Sony Buys $250M Stake In 'Fortnite' Maker Epic Games

Cementing what they termed an already close relationship, Sony has invested $250 million in Epic Games, the makers of the very successful “Fortnite” game. Sony is acquiring a 1.4% stake in Epic, which means the deal values Epic Games at $17.86 billion.

This past May, Epic Games first showed the coming Unreal Engine 5 graphics running on the PlayStation 5, an early hint perhaps of this deal. The agreement “ reinforces their shared goal to advance the state of the art in technology, entertainment, and socially connected online services,” VentureBeat reports.

Epic Games has raised $1.58 billion in three previous funding rounds. In 2012, the company received a $330 million investment from Tencent for a 40% ownership stake.

The investment allows both Sony and Epic Games to broaden their collaboration to create unique experiences for consumers and creators. The Sony portfolio of entertainment assets and technology thus welcomes Epic’s own social entertainment platform and digital ecosystem as seen with “Fortnite” being used as a social space on the Epic Games Store.

Since Sony is only acquiring a minority part of Epic Games and not a controlling stake, Epic is not prevented from publishing to other platforms. Although the Unreal Engine 5 and “Fortnite” will work on all game platforms, the deal is still critical as Sony assembles allies in the next-gen console war with Microsoft. Both Sony’s PlayStation 5 and Microsoft’s Xbox Series X are launching later this year.

In a statement, Sony CEO Kenichiro Yoshida said that Epic’s technology keeps it at the forefront of game development and that is exemplified in the features of Fortnite. Epic CEO Tim Sweeney, meanwhile, said in a statement that both Sony and Epic have created businesses at the intersection of creativity and technology and they share a vision of real-time 3D social experiences that will lead to a convergence of gaming, film, and music. He also said the parties plan to build a “more open and accessible digital ecosystem for all consumers and content creators.”

Epic Games is both the developer and publisher of “Fortnite,” which has more than 350 million registered users. Epic is also the creator of the Unreal Engine, a fundamental toolset for building many games and now, making movies and TV shows.

Although Epic Games didn’t say what it would use the money for, VentureBeat notes that it’s a good bet the company will continue to make acquisitions, invest in its Epic Games Store, and expand “Fortnite.” The company will also likely drive toward the creation of the Metaverse, or the universe of virtual worlds that are all interconnected, like in novels such as “Snow Crash” and “Ready Player One.” Sweeney has said in the past that this is one of his goals.