I'm also confused how Epic Games has become unprofitable suddenly. I think I read somewhere it was in the last 10 weeks but I could be wrong about that.
They probably overhired during 2020-2022 period like everyone else did.
Additionally, AFAIR there were tax rule changes going in play this year that would change the accounting balance sheet. [0]
But, the biggest one in my mind, realities of inflation/shrinkflation are setting in. I'd have to guess that my food cost has gone up enough that I could have theoretically purchased at least one or two skins with the extra money I'm spending on the same or less food [1]. I think this is a factor that is easy to be insulated from in tech, however my friends in various luxury service industries are feeling the pinch; folks cutting down on "spa days" and fancy restaurant trips.
[0] - I know earlier this year a bunch of changes around how Capital Expenditures/R&D were allowed to be deducted, and in some cases it would lead to a large increase in the cost of engineers.
[1] - I don't do Fortnite so I have no clue what stuff costs, broadly speaking however 10-20$ a week is a light estimate.
They own 40%, the only bigger stakeholder beeing Tim Sweeney, Epics CEO and founder. [1]
Assuming Sweeney wouldn't be the one causing it, Tencent is the party that would be able to cause the most financial headaches.
[1] https://www.fool.com/investing/how-to-invest/stocks/how-to-i...