Epic Games CEO Tim Sweeney remains steadfast in his belief that the path to the open metaverse will bring together the entertainment, games, and technology industries in a bright future. However, to get there, Sweeney believes the monopolistic platform owners need to embrace enlightened self-interest. In a recorded video fireside chat at the sold-out GamesBeat Next 2024 event in San Francisco, Sweeney shared his insights on the progress and challenges in realizing this vision.Unlocking the Metaverse's Potential through Collaboration and Interoperability
Bridging the Divide: Fortnite's Metaverse Crossovers
Sweeney has observed a growing willingness among companies to partner and contribute content to Fortnite and other metaverse ecosystem efforts. The massive crossovers of characters from franchises like Star Wars, Marvel, Halo, and God of War into Fortnite have been a testament to this newfound collaborative spirit. Additionally, the music industry has embraced the platform, with major labels agreeing to bring their music into Fortnite, rekindling interest and reaching new audiences.
Overcoming the Moat Mentality: Fostering an Open Metaverse
While traditional media companies have been more open to working together, Sweeney notes that many game developers still maintain a "moat and castle" mentality, focusing on defending their own territories rather than embracing the complementarity of connecting worlds and audiences. However, he believes this mindset is starting to change, and Epic is committed to building more Unreal Engine features to help other companies connect into an open metaverse.
Fab: Empowering Creators and Reducing Content Costs
To address the high costs of content development, Epic has launched Fab, a unified digital content store for game developers, filmmakers, and creators across various industries. Fab aims to provide a centralized marketplace where users can discover, buy, and share digital assets, reducing the need for bespoke content creation and enabling more efficient and cost-effective development.
Towards a Decoupled Metaverse: Game Engines as Browsers
Sweeney envisions a future where game engines, like web browsers, will serve as the programs that players use to access and navigate the metaverse. This decoupling of content from the underlying technology would allow for greater interoperability, as players could seamlessly move between experiences built on different engines, such as Unreal, Unity, or Minecraft, while maintaining their social connections and in-game assets.
Liberating Fortnite: Challenging Platform Monopolies
Sweeney's fight for open platforms has been a central focus, as Epic Games continues to challenge the monopolistic practices of mobile leaders Google and Apple. The company's efforts to bring Fortnite and the Epic Games Store to iOS and Android devices have faced significant obstacles, with the platforms imposing numerous steps and scare tactics to discourage users from accessing alternative stores.
The Role of Platforms in the Open Metaverse
Sweeney believes the role of platforms in the open metaverse should be akin to that of Microsoft Windows – providing a secure and curated environment, but without the excessive "monopoly rents" that Apple and Google currently extract. He argues that the current 30% revenue share taken by these platforms is detrimental to the game industry's ability to invest in the metaverse and its future.
The Metaverse's Revenue Potential: Harnessing Metcalfe's Law
Sweeney foresees the metaverse and interconnected game experiences constituting the majority of the game industry's revenue in the next 15 years. He believes that the social dynamics and network effects described by Metcalfe's Law will drive players to gravitate towards larger, more connected experiences, much like the shift from desktop to mobile gaming.
Unreal Engine 6: Powering the Metaverse's Technical Advancements
Sweeney is excited about the potential of Unreal Engine 6, which he believes will enable significant advancements in networking and player counts, allowing for thousands of players to inhabit a shardless or nearly shardless infrastructure. This technology will be a crucial component in realizing the metaverse's vision of seamless, interconnected experiences.
The Disney Metaverse: Forging a Collaborative Ecosystem
Epic's partnership with Disney to build a new Disney-centric metaverse connected to Fortnite represents a significant step towards the open metaverse. The goal is to create a truly interconnected and interoperable economy, where in-game items and economies can be shared across the Disney and Fortnite ecosystems, fostering a collaborative and mutually beneficial relationship.
AI's Transformative Impact on Game Development
Sweeney acknowledges the rapid advancements in AI and its potential to revolutionize game development. From AI-generated 2D art and code to the integration of AI-powered tools into game engines, the productivity gains could enable entirely new genres of games that were previously unimaginable. However, he cautions that the integration of AI into game development workflows will require significant effort to ensure seamless integration and usability.
