Analyst Calls Fortnite Maker Epic Games' Decline 'Inevitable' After Mass Layoffs

Joost van Dreunen, a respected industry analyst, believes Epic Games' success with Fortnite is not sustainable long-term.

Apr. 6, 2026 at 3:36pm

Got story updates? Submit your updates here. ›

A highly detailed, 3D macro illustration of a glowing, neon-lit computer motherboard or circuit board, representing the complex digital infrastructure behind the gaming industry. The image features recognizable physical tech elements like processors, memory chips, and data cables, all illuminated by pulsing cyan and magenta lights, conceptually illustrating the technological complexities and uncertainties facing the gaming industry.As the gaming industry faces mounting challenges, the complex digital infrastructure powering industry giants like Epic Games is illuminated by the glow of an uncertain future.NYC Today

Respected industry analyst Joost van Dreunen has predicted that Epic Games and its hit game Fortnite are on an inevitable path of decline, citing factors such as the growing power of platform holders, rising costs in the domestic market, and the rise of new game companies in Europe and Asia embracing emerging technologies like Generative AI. Van Dreunen's analysis comes after Epic recently announced mass layoffs of over 1,000 developers, which he sees as a sign of the company's struggles.

Why it matters

Epic Games and Fortnite have been dominant forces in the gaming industry for years, but this analysis suggests their reign may be coming to an end. The decline of such a major player could have ripple effects across the industry, impacting developers, platforms, and consumers. It also raises questions about the sustainability of the 'forever game' model that Fortnite has exemplified.

The details

According to van Dreunen, the three key factors contributing to Epic Games' decline are: 1) The growing power of platform holders like Apple and Google, who have increased their profits significantly more than game publishers in recent years; 2) The rising costs in the domestic US market, with consumers bearing the brunt of tariffs and price increases; and 3) The rise of new game companies in Europe and Asia that are embracing emerging technologies like Generative AI more readily than their Western counterparts.

  • In 2025, the Federal Reserve Bank of New York found that US consumers and companies bore nearly 90% of the costs brought on by tariffs.
  • In 2025, analyst firm Circana's surveys found that 69% of Americans felt tariffs would result in higher costs, and 30% said they would spend less on video games and entertainment as a result.

The players

Joost van Dreunen

A respected industry analyst and the co-founder of one of the industry's top analytics firms, which he sold to Nielsen. He is now the author of the SuperJoost Playlist newsletter.

Epic Games

The game development company behind the hugely popular battle royale game Fortnite, which has been a dominant force in the gaming industry for several years.

Got photos? Submit your photos here. ›

What they’re saying

“Forever games, it turns out, aren't.”

— Joost van Dreunen, Industry Analyst

“Empires don't collapse all at once. They hollow out, slowly, until one day the walls come down and everyone acts surprised. We are currently somewhere in the middle of that process.”

— Joost van Dreunen, Industry Analyst

What’s next

As the gaming industry continues to evolve, it will be important to monitor the performance and strategies of major players like Epic Games to see if van Dreunen's predictions about the company's decline come to fruition.

The takeaway

This analysis suggests that the gaming industry is facing significant challenges, from the growing power of platform holders to rising costs and the emergence of new competitors embracing innovative technologies. The potential decline of a juggernaut like Epic Games and Fortnite could have far-reaching implications for the industry as a whole.