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1) It's not short term. Fortnite is constantly adding new features. This isn't normal crunch before a game ships then relax after patching bugs, it's literally crunch every week.

2) The actual employees are paid very well via a profit share arrangement. To my understanding, the issue is when contractors are worked like this. I don't believe contractors receive overtime or bonuses.

edit: some below have pointed out contractors do receive overtime.

Yeah, I know someone who works at Epic specifically on Fortnite(as a new hire too!) and the money is well, fantastic. The base salary was very high for the games industry and then bonuses on top of it were in the range of 1-2x the annual salary itself.

It's never ok, because once the suits get away with it once, it will be their crutch for every shitty decision that gets made.