During his address at Unreal Fest in Seattle, Epic Games CEO Tim Sweeney discussed the ambiguity surrounding the concept of the metaverse and highlighted how the ongoing success of Fortnite contrasts with the disappointing performance of several high-profile, big-budget games. He argued that this trend indicates a shift towards a new future in gaming.

Sweeney announced that Fortnite reached an impressive peak of 110 million active users during the previous holiday season, breaking new records in player concurrency. He attributed this achievement to a “generational change” in the gaming industry.

He noted, “One of the manifestations [of that change] we’re seeing right now is that a lot of games are released with high budgets, and they’re not selling nearly as well as expected. Whereas other games are going incredibly strong. What we’re seeing is a real trend where players are gravitating toward the really big games where they can play with more of their friends.”

Sweeney emphasized that a game’s perceived value increases with the number of friends players can connect with, whether it’s for cooperative gameplay, voice chatting, attending virtual concerts, or engaging in various online activities.

He acknowledged differing views on the term “metaverse,” stating, “Some people will call it the metaverse, and we’re not all in agreement on what this means. Some people, when they hear the word ‘metaverse,’ they think of what Facebook is doing with VR and now AR. Some people use the metaverse to describe everything they don’t like about the current Fortnite season.”

Regardless of opinions about Fortnite’s current state, Sweeney remarked, “it’s new, and it’s exciting, and it’s something that’s never happened at this scale in the history of entertainment.” He highlighted the significance of ongoing live content updates and collaborations with major brands like Disney and musicians, which contribute to an evolving, world-class entertainment experience.

While some may be skeptical about the metaverse, Sweeney’s perspective is compelling. Seven years after its launch, Fortnite remains a powerhouse in the gaming world, drawing in major entertainment brands. In contrast, he pointed out the struggles of recent big-budget standalone releases like Suicide Squad, Final Fantasy 16, Starfield, and notably, Star Wars Outlaws, all of which have underperformed despite their strong branding.