Sony Invests $250 Million Into Fortnite Dev Epic Games, But Not For PS5 Exclusives

Sony's investment in Epic Games doesn't affect the studio's ability to publish on other platforms.

8 Comments

Sony and Fortnite developer Epic Games have announced a new kind of partnership, with Sony investing $250 million for a minority stake in Epic, according to a GamesBeat report. It's unclear what percentage Sony now owns, but this is not a controlling stake in the company.

The deal solidifies the already-close relationship between Epic Games and Sony, with the two teaming up more recently to show off the advanced technology of Unreal Engine 5 running on a PlayStation 5. Sony's investment will allow the two to "create unique experiences for consumers and creators," GamesBeat said.

Unreal Engine, Epic Games' proprietary creation toolkit that many modern games are built upon, has become increasingly popular since its inception in 1998. Originally built for first-person shooters like Unreal, UE is now one of the most popular engines used in game development, powering titles such as Gears 5 and many more.

It's worth noting that the Chinese internet giant Tencent has also invested in Epic Games, paying $330 million to own 40% of the company back in March 2013.

Though Sony has invested in Epic Games, Epic has confirmed that the deal doesn't preclude it from publishing titles on other platforms. Additionally, Epic has confirmed that Unreal Engine 5 will appear on both PlayStation 5 and Xbox Series X. "If Sony gets any advantage from investing in Epic, it isn't clear from this deal," GamesBeat said.

In a statement provided to GamesBeat, Epic CEO Tim Sweeney said both companies plan to build a "more open and accessible digital ecosystem for all consumers and content creators."

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sladakrobot

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This kind of deal didnt surprised me...Sony presented the UE5 demo as a PS5 demo and Epic/Sweeney couldnt speak better about the PS5 and specifically about the SSD solution lately.
Gone so far that some of the thing were exposed as lies.
But thats a different topic.

MS/Xbox reached their arms to pretty everywhere like a Kraken(see what i did there😂) and bought studios,Sony has to secure their position and presence with deals too.

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Barighm

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This makes no sense to me. Fortnite brings in roughly that amount of money per month. Epic doesn't need Sony's investment, and they certainly don't need to share revenue.

The only thing I can think of is Sony intends to sell something via Epic and vice versa. Maybe some kind of Unreal 5 store on PSN? Maybe they decided to drop Dreams and create a similar type of game creation utility on the PS5 that is powered by Unreal 5?

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tbird7586

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The timed exclusives team

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BDRTFM

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Edited By BDRTFM

Epic has always been about selling out to the highest bidder. Now they are owned by 3 separate companies a.k.a. train wreck. The most hilarious part is that games made for Xbox and Windows are the ones who use this engine the most. Not sure what Sony is going to get for their money? I can't see Epic making features available to Sony games and to nobody else. That would be a really bad idea for their engine and the exact opposite of making a "more open and accessible digital ecosystem for all consumers and content creators." Really strange move but, good for them I guess.

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JusticeSword

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@bdrtfm:
As you stated, epics games sell a tonne on PC and Xbox, aswell as a fair amount elsewhere including mobile and switch, and now sony will profit from all of those sales, aswell as potentially receiving better support for the technical side of the ps5 when it comes to UE5 games.

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deactivated-5f2b4872031c2

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@bdrtfm: What is Sony going to get? Are you kidding me? Why does anyone invest in a heavily profitable company?

(not so subtle) Hint: They are going to get oodles and oodles of $$$.

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Carpetfluff

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Edited By Carpetfluff

@bdrtfm: What are they going to get? Epic is slated to be worth around 17 billion dollars in the near future; what they'll get is a return on their investment - which is why anyone invests in any business.

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jenovaschilld

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@bdrtfm:It is not as simple as what your saying above. Currently games are made by developers ( who use sometimes dozens of studios- including my own graphic print shop) to create the huge complex 50-200+ million dollars AAA games. Of course the developers would never put their own money up for this- there in lies the publisher, whois biggest job is to gather investors (provide the money), deal with legal, promotion, and vast network of merchants digital/brick an mortar. The platform Sony/MS/Nin/mobile/pc etc etc , are the gate keepers, their biggest job is gate keepers deciding what games get released onto the platform. Thus Licensing and charging 20-45% per game. So Everyone gets to make money.

Platform>publisher>developer>studio

EPIC games is a publisher/developer, taking on a few roles, but always using different corporation status to insulate it from failure, overtaking, and tax breaks- tons of tax breaks. But that also means they need investors. Just like SquareEnix, Capcom, EA, Name any publisher -they will take money from anyone, because even if the game fails- it will protect the publisher from huge losses and protect the developer as well. But back to epic/sony, Sony also invested heavily into their own countries developers Squarenix, capcom, konami, atlus for over 20 yrs now. For a few reasons. It is a good investment, kinda guarantees your competition will not buy out their exclusivity, great tax breaks. Not just Asian developers but many different ones, and also not just games but a wide range of services all over the place - financial, electronics, and more.... just like MS.

The gaming industry is so many billions now, they are embarrassed to say. And none of them are fanboys, they will take money, spend it, and invest it anywhere they think will benefit their own investors. That's just business. Luckily this is great for us gamers. Strong competition, new IPs, so many more games per years then the previous, choice. This also keeps prices down, not only per game but also hardware. Just how business works. MS/Sony have especially been spending money left and right pre-9th gen, on just about everything publishers, IPs, tools, and expanding their retailer reach - esp through EU like Poland, Slovenia.

So basically Sony is investing in Epic to ensure some of their games make it onto their platform, and also as an investment. If I was MS/XBOX, I would worry - and I am sure they cross investing to ensure their own best interest.

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