Epic Games Shutting Down Houseparty - October 2023

Houseparty to Cease Operations Following Epic Games Acquisition

The social video chat application, Houseparty, initially acquired by Epic Games – the creators of Fortnite – in 2019 for a reported $35 million, is scheduled to be discontinued in October. Users will no longer be able to utilize the app once this date arrives. The application will be removed from app stores immediately.

Integration with Fortnite and Subsequent Discontinuation

This decision also entails the end of “Fortnite Mode,” a feature within Epic Games’ popular title that utilized Houseparty’s technology to facilitate video chat among Fortnite players. The integration allowed gamers to view live streams from friends and even broadcast their own gameplay directly into Houseparty.

Established in 2015, Houseparty enabled users to engage in group video conversations and participate in various games, including Uno, trivia challenges, and Heads Up. The initial integration with Fortnite appeared to be the primary rationale behind Epic Games’ acquisition of the social startup.

Shift in Focus Towards the Metaverse

However, just over two years after the acquisition and less than six months after livestreaming support was implemented, Houseparty is being sunsetted. Epic Games has stated that the Houseparty team will be redirected to other projects, focusing on developing new “social interactions” across their product portfolio.

The company indicated that this shift is due to the need to concentrate resources on initiatives aligned with the evolving “metaverse” concept. This term refers to a shared virtual environment, similar to those found in large online gaming platforms like Fortnite and Roblox.

Epic Games’ Broader Social Ambitions

Epic Games has emphasized that no team members will be laid off as a result of this change. The company’s announcement suggests that future social features will be designed with the “metaverse scale” in mind.

Fortnite has already begun incorporating metaverse elements, such as virtual concerts and live events accessible through user avatars. Houseparty previously experimented with similar live, co-viewing experiences for its users.

Houseparty’s Technology Lives On

An Epic Games spokesperson confirmed that the Houseparty team has been involved in, and continues to contribute to, several social-focused projects. The technology underpinning Houseparty now supports all of Fortnite’s voice chat functionality and is freely available to developers through Epic Games Services.

Furthermore, the team contributed to social features within Fortnite, including RSVP systems for global events like the Ariana Grande concert and the upcoming “Operation: Sky Fire” event, as well as enhancements to the Create Mode user-generated content platform.

Pandemic Boost and Subsequent Decline

Despite a surge in popularity during the COVID-19 pandemic, Houseparty’s growth ultimately proved unsustainable. The app experienced a significant increase in sign-ups during lockdowns, but this momentum faded as other video chat platforms gained prominence.

During the peak of lockdowns, Houseparty reported gaining 50 million new users in a single month. However, competitors like Zoom, which transitioned from remote work to social gatherings, and Facebook’s “Rooms” feature, offering similar group video experiences, began to attract users. Audio-based social apps like Clubhouse and Twitter Spaces also contributed to the shift.

Data from Apptopia reveals a consistent decline in Houseparty’s usage since the pandemic-related surge. The app has accumulated a total of 111 million downloads across iOS and Android, with iOS accounting for the majority (63 million). The United States represents Houseparty’s largest market, with 43.4% of downloads, followed by the United Kingdom (9.8%) and Germany (5.6%).

Epic Games maintains that Houseparty served “tens of millions” of users globally and that the decision to close the app and “Fortnite Mode” was not due to a lack of adoption. Users will receive in-app notifications regarding the shutdown prior to its completion in October.