Epic Games CEO reveals financial struggles led to recent layoffs after relying too heavily on Fortnite revenue

Epic Games CEO Tim Sweeney admitted the company had a "financial problem" 10 weeks before laying off 830 employees.

Sweeney said Epic had been spending more money than it was making, relying heavily on Fortnite revenue.

Epic has spent money on legal battles with Apple, fines for unwanted Fortnite purchases, and generous revenue sharing with creators.

To expand revenue, Epic plans to increase the price of Unreal Engine through a "seat-based" pricing model.

The layoffs were a "survival move" and Epic has now stabilized its finances, according to Sweeney.