--- categories: - "[[Meetings]]" type: [] date: 2026-03-26 org: loc: people: - "[[Darsh Shah]]" topics: [] granola_id: b913d000-fa80-46e0-99b4-1b2984e6cf82 source: granola --- # Epic’s Strategic Vision & Industry Position ## Notes ## Summary ### Epic’s Strategic Vision & Industry Position - Gaming industry facing unprecedented challenges with major companies struggling - Epic positioned uniquely with $4.25B cash, no debt, clear strategic direction - Mission: prevent “robotification” of gaming industry - stop platforms from collecting 74% of developer revenue - Building open ecosystem vs closed platform monopolies - Industry’s “last defensive move” against platform dominance ### Project EVA Launch Strategy - End-of-year launch combining all Epic properties into single program - Fortnite, Rocket League, Disney Corgi extraction shooter, Lego, third-party creator content - New brand with Fortnite as one universe within larger ecosystem - Goal: combine user bases across all products and partners - Disney critical partner, other AAA developers joining - Users move between experiences without quitting program - All purchases/friends intact across transitions - Strategy to reach Roblox-scale audience (500M+ MAU) through partnership ecosystem ### Financial Performance & Cost Management - 2025 revenue down 20% year-over-year - First half down only 5%, second half declined significantly - MAU 76M (down 5% from 80M in 2024) - Players engaging less frequently, shorter sessions - Major cost reduction initiatives - Recent layoffs completed - $500M additional cost savings identified (outsourced dev, marketing, legal, facilities) - Majority of savings realized in 2027 - Revenue improvement actions - V-bucks price increases implemented - Unreal Engine pricing discipline with steady royalty rate increases - Epic Game Store reducing incentives, eliminating Epic Rewards for third-party ### Technology Roadmap: UE6 & UEFN - UE5.8 final planned release, transitioning focus to UE6 - Preview release targeted end of 2027 - Merging UE and UEFN into single UE6 product - UEFN improvements in progress - 3-5X iteration time improvements by Unreal Fest - Custom items, weapons, new Verse VM deployment - LLM-powered NPCs with dynamic game state - Major team reorganization - Simon Trancjo leading metaverse foundations team - Sebastian Biglio leading creation group with AI focus - Guillot joining to lead UEFN gameplay foundations ### Product Portfolio Updates - Fortnite Battle Royale - New mid-chapter map launch planned for summer - Systems connecting gameplay across multiple matches - Mobile-first mode in development - Rocket League up 40% WAU year-over-year - Project Coronado (UE6 rebuild) feeling authentic to original - Music consolidation - Festival modes merging into single mode - Battle Stage discontinued - Music everywhere features continuing - Lego Fortnite - Bricklife evergreened, focus shifting to systemic improvements - Better multiplayer, mobile optimization ### Mobile & Platform Expansion - Google Play launch success - 4.1M installs in first week of season - $0.50 cost per active user (paid + organic combined) - Zero Google taxes/fees for Epic Game Store - 80% of future gamers will be on mobile platforms - EVA designed for mobile excellence - 1-3GB install size target - Download single universes without full app - Mobile-first content planned for launch window Chat with meeting transcript: [https://notes.granola.ai/t/dbfaca14-2941-496b-a7bc-8ee7155993d5](https://notes.granola.ai/t/dbfaca14-2941-496b-a7bc-8ee7155993d5) ## Transcript **system**: Sustain it more. **system**: But as hard as it is to be epic, it sure is a whole lot harder to be almost any other company in the industry at all. **system**: And back in 2017, we've kind of had this hope that we might ride the wave to the top directly from where we were. **system**: Didn't happen. Robots came in in the midst of this and found their way through a completely different business strategy that we'd never really taken that seriously to reach 500 million monthly active users with a game that reaches kids at a scale that was completely unprecedented. **system**: And, you know, our strategy has been building out an ecosystem aimed at real serious games for serious gamers. **system**: And, you know, building up the ufn tool set with more and more features, but, yeah, a big part of our effort is, is a long-term building effort to get where we need to be in the future. **system**: But, you know, this is the age of massive social gaming and fortnite is one of the biggest social games in the, in the industry. And the most likely leader to bring, you know, serious Gamers and AAA game players along to the future of this at a scale that nobody has done before. And so we're going for it. **system**: And the biggest, biggest visible aspect of this that's going to happen this year is the project EVA launch that's going to come at the end of the year. **system**: You know, the community has picked up on little fragments and pieces of it here and there. So you've seen a lot of misinterpretations of it. But essentially fortnite, rocket league, the massive new AAA disney, Corgi extraction extraction shooter experience we're building Lego and all of the third party creator stuff are all coming together into a single program. **system**: It's going to have a new brand. **system**: Fortnite will be a place in it and even better place than it's ever been in the past with more awesome fortnite stuff and or awesome ways to play. But we have placed among, among walkable in, in this social ecosystem of the future. And so the aim of this is to combine all of the user bases for all of the different products together, ours and our partners. You know, Disney is a critical part of this, as will other AAA developers as they come along in the future. **system**: And, you know, we're going to aim to build a social ecosystem where people go from experience to experience without quitting the program. You go from fortnite to Disney to Rocket League and experience awesome stuff with all of their friends and all of their purchases intact in a way that does for, does for social gaming for serious gamers. What fortnite did has done in the past at a vastly larger scale that we hope could in the future approach roadblocks. **system**: And this is our strategy for, for building the future of gaming. Some people call it the metaverse. You know, it depends on what the former company formerly known as Facebook has done to the term whether it's cool or not at the moment. But, you know, that's the aim for what it is. **system**: And the way we're going to win, it's not going to be epic beating robots. It's going to be epic and Disney and all of the best AAA developers who use our tech and choose to work along with us. **system**: Together with all the fortnite creators who build awesome stuff today. It's going to be us, all of us together building robots, beating robots by, you know, building an open ecosystem that does for all of our businesses, what we get, what we've always hoped. And, like, we have to do this. We have to succeed. If we don't succeed, then it's not going to be apple collecting 30 anymore. It's going to be robots collecting 74% of everybody's money forever. And that's a bad world for everybody. And everybody knows that developers support us. You know, we've traveled around to Japan, Korea, China, all over the United States, in Europe. Developers are very excited about the, the trends we're setting here. **system**: And are, are on board with what we're trying to do. **system**: Okay, let's talk about critical things we need to do to succeed with either this year. The first part of your experiences are critical. Battle Royale needs to be the best battle royale we've made. **system**: I'm so happy with what the team has built over the past few months. Have you realizing the seasons, figuring out a new formula that works really well? It's amazing what, how much fun fortnite is at the moment. **system**: And, you know, a lot of contents in the team, and I, I wish we had 5,000 awesome people pushing it forward. Now we have 4,000. But, you know, this, this is what, this is what the world will fund. This is what, what can be afforded. And this is, this is the team that we have to build the future of gaming. And I think, you know, we're positioned to do it, and it's going to be hard, but it is achievable. A critical part of making these games work in the future is going to be having awesome mobile support. **system**: And there's been really great breakthroughs. You know, fortnite startup times and some of the devices we've tested up have tested on have gone from 45 seconds to seven seconds. You know, the, the time to get into game sessions has improved. The download footprint has improved. Everything's getting better. But, you know, the. **system**: 80% of the world's gamers in the future are going to be people on mobile platforms. The far majority of robots players and mobile gamers. And whether we like it or not, it's the place where we're going to have to be in order to reach hundreds of millions of users. And so continually making our stuff better and better for mobile is critical. **system**: Now we had victory against Google and project liberty. **system**: There's been some coverage in the press about what was done. Basically, Google's deal for developers got a little bit better from 30% to 20, but now competing stores exist without taxes. So the epic game store is free to reach arbitrarily many millions of users without any Google taxes or fees in the way. **system**: And the other critical thing that Google did in settling with us is they agreed to support our plans and efforts. And the whole industry's efforts for the open metaverse. **system**: You'll see in the epic Google settlement document, it's on the public docket. There's a big redacted section. It's heading is open metaverse browser app category. But basically this defines the open metaverse as the open system we're building for ourselves and all AAA game developers in the future. We're building it on the basis of ue6. Others might build their own forks of it using other engines. But it's an open ecosystem of the sort that we're building towards this year and next. And it is tax free. The number for paid to Google on things in the open metaverse. **system**: Are zero. And this is, this is going to be a major part of the future economy and a major incentive to bring on more and more developers to build games this way and not the old way. **system**: And then next year, we're taking this to the next level. You know, this year. **system**: We're at the end of the year, people will see the real new version of epic and the real feature of what we see gaming as. It's a program that lets you go between multiple universes. And when you're in the disney part of the universe, you're a metaverse. It's all disney. It's not a bunch of fortnite discovery tiles and fortnite stuff all over the place. Whatever disney wants in the Disney part of the world is Disney's and it's all theirs. And, you know, when we see third party partners bring in their stuff, we're talking to awesome companies like Sega and others. When you go into their world, it's theirs. But, yeah, you have interoperability of everything as it goes. **system**: Version one of that is we're still operating everything and we're providing the tools and a whole lot of the foundational layers in the future. It's going to be anybody building a ue6 game. Yeah. And we hope to go into preview within a very early version of ue6 by the end of next year. Anybody voting a game that way can deploy it as a standalone game to the app stores. **system**: But integrate are no longer fortnite item shop apis, but our open metaverse economy apis have fortnite outfits fortnite. **system**: You know, songs fortnite cars, you know, an interoperable cosmetics of all sorts with a revenue sharing, you know, arrangement that builds an economy out of all the users of all of the games who participate. **system**: And this is the way to jumpstart us to hundreds of millions of monthly active users. They don't all need to be users of fortnite. They don't all need to be users of our program. They need to partners who have decided to work together to build this together and to participate in building this joint economy together. **system**: And we're doing it in a way that puts us in the central position as leader in this without being, you know, the evil gatekeeper that I long, long objected to in the industry. And, you know, this is the way to get epic to be a permanent force in the industry for the long run. So we're boning this. And over the next two years, as the best of unreal engine five comes together with the best of uefn, we're going to have all of those features available to everybody in all contexts. **system**: And the best of it for everyone, and that's going to be unreal engine six. We're building it and it's, it's going to be, you know, a force to change for the industry. **system**: And developers desperately need it. And, you know, those are the known pieces that we're focusing on at the moment as we go through a reorganization of the engine teams to get everybody aligned to build ue6 and take all the necessary steps there. But there's a lot more happening that's going to, that's going to be a critical part of it. There will be massive new support for generative tools to build environments more efficiently, to make characters more efficiently, to have conversations more efficiently and so on and so on. But, you know, we have another opportunity to upend game development in a way that is perhaps the biggest generational change we've seen yet, you know, from Unreal Engine one through under orange and five. This next state could be the biggest. And it's not just us doing it alone. We have a lot of awesome partners to work with throughout the industry to build it. **system**: And then, you know, when, when we go through our downturn like this, you know, the community is really sad about it, and they're also angry. And I find you just go back to doing everything the way you did before because, you know, it was, we liked it better. And, you know, in some past years, well, gaming is changing. Epic is changing. The industry is changing, and we're going to have to be voting for the future. But the fundamentals of how we're operating the game and the business, are the absolute best that we, we can see to do given, given everything we've learned about how fortnite in the economy works. Having awesome first party games is critical. But there are times when people aren't playing them and having the community building awesome content to carry engagement is critical. **system**: Building economy to make it worth your while to do so is critical. **system**: And, you know, to, to a large extent, the, the lack of amazing, awesome stuff in uefn is AAA game golfers would, would like to see is the lack of the tools that we provide the community to do that. And as we build in more and more tools and apis for them to build, we're going to see them, you know, fortnite creators take more and more of the initiative to make the future of gaming and make the future of the ecosystem as well. **system**: It's a long building project. I think we're doing the right things and we're on the right track. **system**: And, you know, the economy is going to be a critical part of it. The way to make the business scale way beyond what epic can do ourselves is to build an economy that everybody can participate to in and profit to as we build up to hundreds of billions of monthly active users together. **system**: And, yeah, so that's what we have to do. It's a, it's, it's a daunting time to be in the industry right now. We're all feeling it. **system**: But if you look around you and you look around the other companies, it's hard to see a company that's, like, in such an awesome, better position now. Everybody's suffering under the same trends and everybody is facing the same uncertainties for the future. **system**: I think the biggest difference with epic right now is we're taking really big proactive steps to survive and to get to the next level and not get caught up in the meat grinder that got activision electronic arts and Ubisoft and so many of our other peers. **system**: I guess I should hand it out to Marcus to talk more about the tech strategy that we're working on. **system**: Yeah. Thanks, tim. I mean, the, the first thing, you know, I just want to cover here is, you know, any changes that we're making to. **system**: You know, the company and desktop so that we can really focus on the goals that the Tim outlined here. **system**: Not going to say anything new to, to people that listen to me talk on Tuesday, but, you know, I think it's kind of useful for everyone to hear the same thing. **system**: You know, so just in no particular order, you know, one thing we have the, the HMI business on UE kind of point lining down internally. **system**: Moving off to external partners to help support the, the ue5 based business in the automotive world. **system**: Just, you know, I just want to say that it's not because the automotive teams did bad work. In fact, I think they succeeded time and time and time again under really incredible pressure. **system**: It's just that, that business isn't really scaling as quickly as we need, and we need to double down on our primary UE6 strategy. **system**: We'll also be investing less in simulation and architectural space. **system**: But we're going to stay invested in m where we have, like, a really strong presence. **system**: The twin motion team is, is kind of moving into, to apply their ux and tool skills to, to some. **system**: You know, nice, nice creation tools that we're going to expose both inside of fortnite creative and inside of uefn. So everyone benefits. **system**: Also, some of the twin motion team is, is going to move to, to help, you know, other efforts around ue6 as well. So I'm really excited to have, have them kind of come on with the main UE team. **system**: Certainly fortnite creative is one of those things that kind of flies under the radar has, has quite, you know, like, literally millions of users. **system**: That use it for play and creation and, you know, still a small amount for, for publishing, and we think it's worth, you know, worth a revitalized investment there. **system**: The quixel team will be, you know, pretty much winding down work on, you know, new mega scans, scanning and asset creation. We're going to focus, you know, really specifically on shipping corgi. **system**: Or pixel tea pipe in there. **system**: Foliage tools, world creation tools. **system**: And our fab plugins, as they've been doing. **system**: On that front, the, the fab team itself is, is going to be kind of moving over the UV side to focus on supporting AI creation efforts by providing the back end for our out of the box creation features and, you know, spend less time operating the marketplace, which, you know, we think, we think the possibilities for out of the box AI features on you is pretty high. **system**: You know, probably the biggest change is, is on the UE side where I think we're pretty aligned. **system**: We're going to make it the plan of record that 5.8 is the last planned release for ue5. **system**: We're going to continue to do our work on ue such that it flows into the mainline. **system**: We're not going to hide away at a ue6 stream, you know, licensees. We'll still see stuff coming. **system**: We're going to continue to work on, you know, the AI workflows and development assistant that we have going. **system**: Probably have a small team of people for immunity working on plugins and the 58 stream and hotfix and stuff. **system**: But generally we'll treat 58 like it like an lts release. Similarly, similarly to what we did before 27. **system**: And fortunately, the UA team's done some pretty amazing work in the last couple of years. Ub5 is in a pretty great place. I mean. **system**: There's a ton more we could do and, and would like to do if we, if we had, you know, the luxury to do so. **system**: But remember that at the end of ub4's life cycle, we, you know, we took a, we took something like an 18 month break between formal releases as well in a similar fashion. **system**: That said, we are reserving the right to, to cut a brand new 5.9 build off of the main line. If we have a compelling reason to do so later. So we're not going out to the world and screaming that, oh, ue5's over or anything. **system**: You know, it could very well be that dramatic improvements in our EDA and AI powered workflows are a real reason to do that, you know, in the next year or so. **system**: And, you know, of course, any new hardware consoles that come out will support on ue5. It's a licensees, get what they need. And, you know, we'll keep shipping games on our own tech to keep ourselves honest along the way. **system**: On the online front, probably the most impactful change to, to strategy and day to day is that we're going to change our stance for EOS. **system**: You know, not today, but when we've got some prerequisite work done, we're going to really focus on epic account services and, and the social overlay. Like, that will be the product. **system**: To the extent that. **system**: You will, that will be the product as opposed to the a la carte, you know, EOS services that we have to pay. We'll be removing a few legacy services, like, like ticketing and putting the productization of some others, you know, kind of on ice, like, like inventory service. **system**: You know, we'll develop, we'll develop it for internal usage as necessary, but really focused on those services which are required to provide the functionality of social overlay and store parity with steam. **system**: And we're doing this because we really think social. **system**: As the product will become ever more important to developers. Right. The world ride regulatory landscape for communication between gamers on their games. **system**: Is really complex and becoming ever more complex and fraught. **system**: And developers want players to play their games and communicate inside their games, not shell out to, you know, Discord or FaceTime or whatever. **system**: And combined with kWS, we really have something unique and meaningful to provide, provide the world here. **system**: So we're changing the strategy here, not because the us is bad. I mean, there's plenty of awesome success stories for developers with the OS. **system**: But just, you know, in generally aren't more broadly converting into epics ecosystem. And we think this change will really expand the, the social ecosystem. **system**: Yeah, that said, you know, we aren't going to require that games to adopt a social overlay only support epic sign in and kind of become overlords of their player relationships. But we're going to ensure that we have hooks so developer account systems can be backed by epic headless accounts. **system**: Similar to the way we do with consoles today. **system**: Right. And, you know, I think this will be the best of both worlds here. **system**: So, yeah, I think that's it for, like, the really big changes. So I'll hand over to Jordan now to talk about changes on the game dev set. **system**: Hey, so similar to Marcus, I want to cover the things that are going to allow the team to, like, focus going forward. So as mentioned the other day, rocket racing and ballistic are both coming offline. But rocket racing, you know, the team's going to work on building the tools so that they're, you know, available to creators in uefn. And for ballistic, like the first person weapons and, like, items that are used in there are already in, like, creators hands. Music we're taking down battle stage, and we're going to be compressing the, like, festival modes into one mode. I'll talk about that later when we talk about, like, our board looking strategy for music. Some of the things that we didn't talk about the other day was Lego evergreen bricklife. So it's going to stay online, but the team's already had it done this path so that they can focus on Odyssey. **system**: And, and growing the game there. And then, like fortnite as a whole, fortnite has a lot of modes, and we're going to be more intentional about what modes are live at any given time. So, you know, take, take stuff like respawn Rumble or even Blitz. Like, blitz, we're going to look at evergreening for now. Like, it'll stay online. But, you know, we're going to look at using more of a strategy to at times, maybe even like pulse these modes so that they don't just sit out, sit online and have a player count that starts to, like, trickle down. We feel like by pulsing them, we're able to tie them to, like, an intentional beat that should be able to get more F, like, more attention from players and be more engaging without the dev team feeling like we just have a lot of modes online that they're having to, you know, be spread like peanut butter across. Right. **system**: So that, you know, there's a lot of modes that fall under that, and I'm not going to go into all of them, but it's essentially how we're looking at going forward with fortnite. **system**: So I'm going to hand it off to Randy to talk about some finance stuff. **system**: Thanks, Jordan. Hi, everyone. Due to the engagement weakness that started in early 2025, revenues declined last year. **system**: In the first half of 2025, revenues were down only 5% year over year from the first half of 2024, which, as a reminder, was an excellent period following og. But in the second half of 2025, the year over year declines were more significant and revenues ended down for the year by just over 20%. So we entered 2026 with that headwind. At the same time, overall costs have been increasing due to both overall inflation in the economy and deliberate Investments in our ecosystem. In order to ensure a more healthy financial situation, we did the layoff earlier this week. **system**: In addition, we identified over 500 million dollars of additional cost savings across some large categories like outsourced development, marketing, and some smaller ones like outside legal expenses, facilities, travel and others. We believe we will continue to be able to find additional efficiencies and outsource development and non people related expenses to continue to bring cost down during the back half of 2026 and into 2027. With these actions, we'll be able to cut our losses in 2026. Having said that, given severance and the time needed to realize other cost savings, the majority of the cost savings will be realized in 2027. We've also taken actions across the business to increase revenue and profit. These include the vbucks price increases we recently announced, discipline on unreal engine pricing where we have been seeing steady increases in royalty rates and direct monetization that we launched late last year, which, while today is small, we expect to grow over time. **system**: With respect to the epic game store, we are reducing incentives overall and changing them with a goal to more profitably grow gmv. To that end, epic rewards for third party will be largely eliminated, and we will reduce overall EGS incentives and shift them so that consumers will see lower prices funded by both epic and developers. While we expect to operate at a loss in 2027, we believe we can be profitable in 2028. **system**: To do that, we need to stabilize fortnite engagement, expand reach on mobile and PC, grow the creator economy and have a successful Disney launch. I want to remind everyone that our audience remains very large and the engagement challenges are about depth of Engagement rather than breath. What I mean by that is mau in 2025 was 76 million down only 5% from 80 million in 2024. **system**: Having said that, players are playing fewer times per month and fewer hours per session, which means the DAU and hours were down more than ma. But if we can Delight players with great content, we can engage them deeper. While we have a lot more work to do, we are seeing some positive signals. The K-pop demon Hunter activation in October led to the highest revenue per daily active user since December 2024. Fortnitemares brought back a strong number of return players. In November 2025, the Simpsons mini season launch drove weekly active users up 18 week over week, which is the largest week over weekend since the fortnite og season in 2023. **system**: Since March 19th, Google Play has had approximately 4 million downloads and 1.8 million successful sign-ins. And we're beginning to see the year over year gap in key kpis starting to narrow, which gives me confidence that we will start to see stability in the back half of the year on an on an upcoming company meeting. I'll update you in more detail. Finally, I want to again reiterate that our balance sheet is strong. We have cash in the bank over four. We have a lot of cash in the bank, over 4.25 billion dollars as of today and no debt that will allow us to continue to invest in our future. **system**: Now, Adam, Jordan, Marcus and tarot will follow with some details on our execution plans. And with that, I'll turn it back to Marcus. **system**: Okay, back to me. So, yeah, I'm just going to talk about uefn and uv6 for, for, for a minute here. **system**: You know, names everybody knows uefn is the tool for creation and publishing into the platform that we're trying to go. **system**: To grow. So, you know, we're currently in the midst of a pretty hard push on, on making significant improvements to iteration times and stability. **system**: While still taking the time to ship a few impactful features. **system**: As well as supporting the coronado team. **system**: So, you know, we are, we are on track to realize something like a three to five X improvement in iteration times for push changes on real projects from our most successful developers. **system**: By unreal fest. **system**: We will also have some meaningful additions to what can be live edited verse compilation speed improvements and, you know, and, and more by then. So, like, the unreal fast story for youth end should be a pretty good one for quality of life. **system**: We've also got a pretty long list of known work to tackle after that. **system**: To keep things getting faster, like, you know, three to five X will be nice. **system**: But, you know, isn't, isn't near this, isn't quite the speed we want. **system**: So the good news is. **system**: The work to, the work to fix it is, is, you know, pretty well known. **system**: You know, the trick is to carve out the time to do it. **system**: We're also going to be rolling all this tech out to the coronado team first so they can benefit before we ship to live users because the, you know, the pipeline to, to live release is quite long, but internally we can, we can do a little bit better. **system**: On the stability front. We have an ever growing stable of automated tests. **system**: Updated automated cooking, validation, and client testing for thousands of islands of time in release streams. **system**: We have a, you know, a pretty new pre-release access program for top developers to do their own testing, which is, which has got us some. **system**: Some nice wins and nice developer support. **system**: Yeah, there's a, there's a ways to go here. But between these two, we expect to get to, you know, at least table space, table stakes from a usability perspective. You know, that said, that doesn't quite get us to compelling games. So through the rest of the year, we're expected to make really good progress on landing our custom item stuff, which is the next couple weeks, custom weapons. **system**: The deployment of the new verse VM is, is on track for soon, it'll be faster verse script execution. **system**: And then faster development on, on new features. **system**: We're going to be shipping llm powered npcs and, you know, dynamic game state through structured output from talking to the llms. **system**: AKA the artist formerly known as persona. **system**: Which is rolling out to like a small, well, a list of 300 in the a developers pretty soon. It's pretty exciting. **system**: And we have a mix of other really impactful items across gameplay abilities. **system**: And, you know, **system**: We're going to be taking a crack at, at character components and, and building. **system**: Up, you know, real player controls for, for dynamic gameplay. **system**: Through the share. I think there's a good chance we can knock a lot of that out, maybe even by, by evo launch. **system**: And finally, I just want to acknowledge, like, we're battle testing as much UEFN tech as we can. **system**: To build coronado, which has been quite, quite a painful process, and we're really grateful for this, to the coronado team for powering through and continuing to power through. So I just, I just want to say, like, the whole dev team across epic is committed to making sure that coronado ships. We're going to be making some, some pretty major changes soon. **system**: To, to help get build health and workflows under control for the corona team. **system**: So that, you know, excuse the mess this week. It's, it's been a rough one. **system**: You know, but we, we are committed to getting that under control. **system**: As, as a broad death group. **system**: You know. **system**: So you look in past Evo launch through end of year 2027. **system**: You know, the uefm product plan is, is actually pretty clear, you know, as Tim was mentioned before, but, but for any of your 2027, we're driving towards the goal of having a ue6 preview one release, which has, I think, three very distinct goals. **system**: One, to merge UE and uefn back into a single product, ub6. **system**: To dramatically increase the game making capabilities of, of uefn, AKA ue6, which I think will only accelerate through this year next. **system**: And to provide developers. This is a new one to provide developers with a way to independently host of vanilla ue6 server that our Evo browser application can play. **system**: You know, these are really necessary to make sure that we put the bulk of the effort toward a go larger than just an expanded fortnite ecosystem. But, but towards that open metaverse itself. **system**: Right? **system**: Like one key aspect of, of being a metaverse browser is that you can browse and interact with content that is independently hosted by anyone. **system**: Via the open standards and protocols. **system**: And so by building our Evo browser on top of our very available ue6 stack, we will be able to get to that stuff. **system**: We think this is quite achievable, and I think crucially it, it really gives us a reason to answer the question. **system**: You know, what is the vanilla uv6, you know, game creation capability outside of, of fortnite concepts. **system**: So really excited to be able to tackle that problem from both ends, like with a, with a crisp goal on, on both sides of that. **system**: And, you know, just to, just to mention it to reinforce those goals for the next 18 months or so, we have designed a pretty substantial reorg of the unreal engine teams at large. **system**: The new team structure is, is meant to optimize specifically for ue6, uvfn, Evo launch, and ensuring we don't get left behind on the content creation side with, with respect to AI powered workflows. **system**: So the broad Strokes here, Simon tranjo will lead a large metaverse foundations team whose focus is, you can kind of think about the v6 runtime and, you know, you know, service ecosystem. And Sebastian biglio will lead a creation group. **system**: Whose focus is improvement and reimagining of content creation workflows in a world where our AI usage is totally unlocked. **system**: And also of note, if you haven't, haven't heard yet, guillot is going to be joining the group to lead a pillar. **system**: Really focused on ufence short and medium term goals and building the, you know, the real gameplay and character foundation of the metaverse. **system**: So these groups will be kind of a mix of engineering and product, they'll unbalance most of engineering will still be assignment. **system**: But the most important thing to note here is that we did not build two engine teams. We're still building one product with these two teams. We're building uni six before just making sure the structure optimizes for those goals. So we're still finalizing the details this week. It's, it's kind of a lot. So, you know, stay tuned, but we should have everything, you know, resolved by early next week to share with people. **system**: So, yeah, thanks. I think on to Adam to, to talk about. **system**: Game plans. **system**: Thanks, Marcus. First, I wanted to say that Devin is out of office this week. He really wanted to be here, but he will be back next week. **system**: I wanted to call out, you know, as you heard from Jordan, we're creating additional capacity across the game teams by doing a few different things. We're sun setting products or descoping products, and we're reducing investment with those products. And with that capacity, we're matching the capacity we're creating to our highest priority growth initiatives for the year. And we're zoning in on five areas that we think are critical to enable our, our growth. **system**: So first is we got to introduce new and deeper gameplay systems around engagement and social. While great content is table stakes, and we've been fantastic at it, great content alone won't get us there. So as you've seen with some of the systems we introduced with the Showdown season and Rivals, we have the rival system with the leaderboards. We're seeing that really resonate with our players. We're also seeing greater retention. **system**: Even in the first week of the season alone because of those systems. And so we think we can continue to build on innovating gameplay systems into the core gameplay itself. The second thing we need to do is drive reach. **system**: Two years ago, we had 55 million user new users we brought into the ecosystem. Last year it was only 47. **system**: What is key to driving reach is going to be mobile. You've heard multiple people mention that. That is the first and foremost area of scale. We also think PC has opportunity. But what's different this year versus last year is we are now on Google play globally. Randy alluded to it, but when we launched our season in less than a week, we've driven over 4.1 million installs. **system**: And a couple things about those installs. One, our cost per active user is only been a dollar and our cost per active user for paid and organic combined has actually been 50 cents. So we think we have a lot of runway still with that app store. And we think it also helping us reach internationally where we've struggled to reach new audiences. **system**: Third is we've got to create cohesive packaging around our gameplay story characters and marketing and put it together in a tight package that really excites our audiences. And we're going to be focused on that with season launches and new game mode launches and even new big products. **system**: The fourth area of focus is to elevate our programming. We got to give people reasons to come back. We have, you know, launched these power hours every Saturday and they've been getting more momentum over time. And we've seen our creators be able to do that with like steal the brain rot where they have their events and they've gotten to about a million ccu. So we're going to have regular programmed events and we're going to couple that with our big only in fortnite moments that put fortnite in the zeitgeist. And we have a couple of those planned for the rest of the year. And the fifth area of focus for us is find the fun. I know that sounds obvious, but at the end of the day, we are here to entertain players at scale. And whether it's a new mode, whether it's a new season or whether it's a new game, we got to make sure at the core it is really fun to play and it is fun for our masses. So, you know, what are we doing to enable us to help better deliver against those? We've actually made a couple of changes over the last couple of weeks. One, we have a new organizational structure. I think you saw me announce that in the epic global channels. But now we've integrated the game team and the marketing team into a single organization. **system**: By doing that, we've also changed the way we are working. We are more integrated and we're more focused on the delivery of the five areas we just talked about. And I think that we're already seeing encouraging results with this new organization and this new way of working. But both of those were done to help us enable to deliver against those goals. So as we're going to get into more specifics around the products, I'm going to hand it off to Jordan. He's going to go through more details of our portfolio. **system**: Thanks. **system**: Adam. All right, so to jump right in, let's talk about fortnite first. So as Adam mentioned, like at the foundation of this, we need to continue to make amazing creative content, and it has to be fun. Right. So each season, the team is working on plans for the year, and we're refining these seasons to make sure that they are like as novel and as interesting as possible. **system**: And so in, in, in terms of that, like, elevated programming and stuff, you know, we have an event that we're planning for the summer that pays off the stuff that we've started to establish with the showdown season. And that event is actually going to bring a new map to battle royale this summer mid chapter, which is something we've never done before. So there's like some pretty big excitement on the team about that because we feel like it's an opportunity to shake up, like, what players think of as a, as a chapter. And then on top of that, you know, the team is also working on similar to, to the rivalry system, how the team was working on an engaging system. They're looking at more systems to integrate into battle royale that start to break out beyond just playing within a single match and having that singular experience. So why, you know, why do I have a reason to go to another match to show up for another day that week systems that start to connect the gameplay between, between, you know, multiple matches? And I think we'll start to see that show up in, in season three, but really carry out throughout the year. And then, like, as Adam said, like, we need to reach players and, like, be on mobile. And so the team is going to be investing in, like, a mobile first mode. And this means, you know, taking a look at controls, taking a look at gameplay performance, really making sure that we build a mode that is, like, awesome to play on mobile first. And it has what players, like, expect there. And it's just, you know, it doesn't feel like you, you know, it's, it's too complicated or it, it runs too slowly. **system**: So let's talk about, like, the Lego team next. As I mentioned, bricklife is being evergreen. And so the team is going to be focusing on systemic improvements to the core of the Lego game. Basically, how can we make the game more multiplayer? How can we make the game better on mobile and just a healthier foundation that we can then layer content on going forward? **system**: The rocket league team is, is working super hard on coronado, which is starting to feel like rocket league. You know, rocket leagues this game that's existed in ue3 and has, it has been in ue3 for many, many years. And so now to rebuild that inside of uefn, it, it's awesome. It's like you, your hands on the controller, it feels like you're playing rocket league. Now, there's a whole lot of other stuff that still has to get developed for that to be, like, the proper full game. But it's really exciting that, you know, it has that feel that the game has. But speaking of rocket league, like, the team has had really good success this year. They've leaned into the competitive nature of the game. They fostered real life events that became a reason for content creators to stream, and they have consistently delivered some quality of life updates throughout the year. And this has turned into, you know, rocket league as an example. It's like up 40 wau, like year over year, which is really awesome for that, that game. **system**: So now moving on to music, as I mentioned, you know, we're going to be pulling the festival modes into one mode, but at its core, you know, music is still like a really big part of, of, like, fortnite's identity. And so that team's going to continue to work on music everywhere features, you know, making sure that, like, jamming works and the ability to, like, express through music throughout any game in the ecosystem. **system**: They've just shipped portrait mode and festival, and so they're going to continue. That team is going to continue to, like, spread that support of portrait mode throughout, you know, when you're selecting tracks, when you're entering the mode. And then we are going to be bringing in, when I say we're going to be bringing them into one mode, this means that jam island is going to be merging with main stage and even some of the lightweight social features that we started experimenting with in dulu. We'll be bringing them into this mode to keep experimenting there and sort of have this, like, music meets, like, social engagement sort of experience. **system**: And so last, I want to talk about this. And so boxer and husky are, like, well into pre-production and the teams play multiple times a week. They're playing on mobile devices. The games are looking great. They have art styles that look awesome that are in development. There's, like, awesome gameplay that's being developed for those games. But this year's focus is on corgi as it's, like, into production. The team is on a road to shipping. And as, as Tim mentioned earlier, you know, this is our sort of extraction shooter that we're building. It has this awesome book where we're mashing up, you know, multiple IPs within, within the Disney universe. So you have your Star Wars and, and Marvel coming together. They get to explore these combined worlds, play with these different characters and take on the role of a, of a bounty hunter. And, and so not only is this team, you know, focused on bringing in new game plan to our ecosystem that this, like, Bounty Hunter experience will give them. But it also has a new art style that the team's developing, and it looks really different from fortnite. This is where the, the metahuman team has been getting involved and help, you know, develop outfits and looks for them that, that's outside of what we've done at fortnite before and also the mega scans team has been joining. And quick solely has been joining to make the world's, like, really, really distinct. And so it really does have, like, a unique feel to the gameplay and a unique look. **system**: Compared to the other, other Shooters that we've done so far. And we think this will be, like, a really awesome moment for Evo combining, you know, rocket league gameplay, this awesome Disney IP and then, like, a really big update for fortnite that we have this year. So I'll hand it off to tara to talk more. **system**: Thanks. Yeah. Yeah. Before we wrap up, let's just touch on Evo a little bit more. You know, we, we have a real opportunity with the launch of evo to deliver massive reach and growth. And this has been said a few times. But just to kind of help everyone reimagine it, like you're bringing together the power of Disney and corgi, which was just described, the next rocket league and everything that we've been building towards with fortnite all together at one moment. **system**: And when you launch this, you know, in a single place at a single point in time, it really allows us to get global attention that can drive reach and awareness and reconsideration for players everywhere. And, and it's, it's not just through epics approach, but it'll also be with Partners and, you know, with big, the biggest brands in the world who are, who are doing this with us. And, and Tim mentioned that we're going to have some specific kinds of universes. So at launch, we're going to have four IP focused universes. We have Disney, you have fortnite, you have Lego, and you have a rocket league. But we're also working on a fifth Universe where it's Standalone uefn games and content. This is where, you know, some of the best game developers can come and launch their standalone, you know, UEF end game and participate in the ecosystem, get discovered and find success. So you combine all of that together into a single moment. It's really powerful and it brings a lot of opportunity to drive reach. **system**: And when we talk about EVO, we talk about it as a, you know, neutral metaverse browser style app. **system**: It's an important nuance because to our approach, because we are intentionally designing this to respect the unique needs of brands and player choice. **system**: So each universe has its own look and feel. **system**: Its own shop, its own Locker. And this is important for Brands because they want a place that feels unique to their IP if you're going into the Disney universe, it's got to feel like it's all about Disney and their, and their content. **system**: And it's really important for players if, if you're a rocket league player, you don't want to feel like you're coming into fortnite. It's got to feel like you're in this awesome rocket league experience. And that's exactly how we're designing this. **system**: And it is, it is one of the reasons why we believe Evo is a growth driver for us. You know, fortnite has this, you know, awesome, globally known brand, but it's largely attached to battle royale as a genre. **system**: And it really is an obvious to people that inside of fortnite, you actually have diversity of content. We saw this time and time again as we tried to grow and promote Lego. And Lego games and content. So we believe that by renaming the top level app while still keeping, you know, the awesome, you know, power of the fortnite brand and what it's really known for, you know, the battle royale genre, we believe we can really drive consumer consideration across, you know, you know, many different game genres and really ultimately, you know, drive growth for, for the ecosystem. **system**: And we can really give players, like, what they want inside each universe. So, you know, if you're inside of the fortnite universe, you're going to have a great experience with content that feels like the stuff you want to play. And same thing with each of the different, you know, pillars that in universes that we talked about. **system**: And importantly, you know, the epic social overlay will persist, you know, across Evo. So you can seamlessly transition between games and between universes with your party, with all the items and the things that you've bought and earned across fortnite and rocket league over the years, you know, all of that comes with you. **system**: And, and you've heard a lot in this meeting about mobile. We are also designing Evo to be excellent on mobile. You know, the architecture of Evo is going to be one that'll allow you to download single parts at a time without having to download the full thing. You know, that means on mobile, if you just want to play Corgi, you know, you can download the Disney universe and get started quickly and jump right in. You know, we're targeting between, we're targeting between a one and three gigabyte install for the Evo mobile base, you know, getting, getting, you know, smaller over time. **system**: And, you know, that means time to play just gets faster, which is really important for mobile as we all, as we all know. **system**: And then we also have mobile first content that we're lining up for the launch window. So some of that will be based on, you know, really known IP. Some of it will be original IP. Some of that content will be made by epic, some will be made by other developers. But, you know, together with, you know, the, the fast time to play and mobile designed content, you know, Evo should be awesome on mobile to start and only get better as, as time goes on. **system**: And we have been sharing this plan with some of the best game publishers in the industry, and they're incredibly bought in. And that's, that's really because this isn't just a platform launch or a new launcher. It really is a vision for how the games industry can move forward in a totally new way, one that, you know, is built on open, open principles, is connected with a strong social ecosystem and has fair terms for everyone. And, you know, what, what I described, you know, above and what Tim talked about earlier is, is what we're shipping within v1. But there's so much more that's going to grow and evolve as ue6 becomes real. That'll only kind of make that promise of the open metaverse more real. **system**: To people. And, and there are, I, I would say almost every team at epic is working towards something that is driving and delivering for evo. There's so many components of what it takes to actually make this awesome, whether you're working on bulldog or coronado or fortnite or social overlay. **system**: Or branding efforts or, you know, you're building search or discover, you know, all of those things, plus a lot more are coming together inside of Evo to make it great. And, you know, it's, it's really taking the whole effort of, of the company to pull this off. **system**: So I think that's kind of our, our kind of grouping of, of topics for today. I don't know if, Tim, you wanted to say anything to wrap us up. **system**: Yeah, thanks. **system**: There's a lot going on. There's a lot that we've been talking about here. But, you know, the, the industry is evolving. **system**: In unexpected and surprising and rapid ways, and that's going to continue. The companies that reinvest through this time and find their way. **system**: And learn the new ways of game development are going to be in an awesome position and the ones that don't adapt are going to be in trouble and are in trouble. **system**: Like in the financial scale, it always quite daunting. You know, we, we have billions of dollars in the bank, but we were on track to run out of money in three years. Now our finances are in your control, and we have the time to execute on the, you know, plans for delivering for this year and for next year and for unreal engine six and for bringing the industry around to our, our point of view. And so we have the runway we need. We bought it at a deer price at great pain. But we're, we're going to execute and go forward. Now, we've talked about a lot of code names here, but, like. **system**: Let's back up. The, the games that are being worked on are awesome. Rocket League has been amazing. And as really poor, we, for psionics for years and now for, you know, the part as a part of epic games for years. And, you know, the, the new update that's coming along, project coronado to bring it into not just Unreal Engine six. Now we skipped another engine version, but also into this project Evo side by side is assembling to fortnite. It's awesome. It's going to be so, so cool and true to the original game. There's a ton of work to do and the effort to get shipped in time for this year is daunting. But there's a lot to be excited there. Fortnite is coming along great. **system**: And cor is the Star Wars themed extraction shooter that's going to really bring a fresh visual style to, to the universe that fortnite and rocket league and others are in. It's a much, much more realistic style with an item shop that contains much, much more realistic characters. And those characters move back and forth into fortnite and fortnite characters move into it. And so we're going to have a real fresh feeling when players get all this together. **system**: And that's the critical thing for project Evo. We've talked a lot about, we've not shown screenshots yet. There's a lot of UI mockups going on, but essentially it's a new level to the UI. **system**: Fortnite. When you're in fortnite or rocket league, it stays what it is. And it, what it has been, and it feels like you are there and that's what you're doing. But when you scroll up one level, I'm now here at this universe selector. You have a search bar that looks like a web browser. You have all the neat things that happen in an open browser for open content, as well as a presentation of all the different universes. You can go among and, you know, a path for bringing more and more to game developers along to become first class citizens in that new world. It's a, you know, if it sucks, it's going to be like another failed cracker brand or cracker Barrel rebranding. And so to make project Evo succeed, it needs to be awesome. And fortnite needs to feel even better than it felt before. And rocket league needs to feel even better than it felt before. And, you know, world of Disney needs to feel fresh and new and exciting. And it all needs to be better. The team has some great plans and some great mockups and progress. And I think it will be better. **system**: And that's why it has to be like, this is not some grand scheme to build this nebula setting called the metaverse, the plans for this year and next are extremely tangible. We've done Partnerships with companies throughout the industry to clear the way for it. And game developers are in and support us. And so, you know, this is our mission. The game business has been cut in by a whole lot of, like, you know, low quality free to play stuff. And a lot of roadblocks. You know, the whole AAA industry is suffering. Our job is to make, they gave me this safe for awesome games again. Yeah. If I bring together the best of AAA gaming with social by delivering this, you know, with our first priority projects at awesome levels of quality and by bringing the technology to all the developers who always counted on Unreal Engine so that they can participate only by building Standalone games, but by participating in the shared economy together. **system**: I believe, like, this is, this is the industry's last. **system**: Last defensive move against the robotification of everything. And, yeah, we're on the team with a lot of great developers throughout the industry making this work together. It's a lot of work ahead. But, you know, I think at the end of this decade, we're going to look back and say that either we bought the new version of the game industry together and got it to a great place. It's awesome for everybody. Gamers and developers or we lost it. It's gone to because robots will cover everything. Like, that's our mission to make sure that we come out in that good world. **system**: And I wish we had been able to, to get here in a smoother path. **system**: I'm sorry that we've, we've volunteered the turmoil. We have gone through. But this is a company that's committed to, to executing, to delivering, to winning and to serving as a future model for how, how gaming can operate in the future. So, so thanks for all being a part of it. **system**: And thanks for everything that everybody is doing throughout this year. And I'm grateful for everybody's work. **system**: And, and this is it. This is it. This is the team that's going to build it together. And, and we have a, we have a clear mission ahead for what we need to do for the year. So thank you all for being a part of it. **system**: And what that will wrap the call. Thanks, everybody. **system**: Bye. Thanks.