Sony investing in Epic Games? On July 9th of this year, Sony acquired a 1.4% stake in, Fortnite maker and Unreal Engine 5 creator, Epic Games.
How many dollars does it take to acquire a 1.4% stake in Epic Games? It seems that $250 million will do the trick, as that is the amount that Sony invested in the company for the minority stake.
Those of us who witnessed the Sony PlayStation 5 reveal in May, already saw signs of this new partnership as Epic Games first showed the upcoming Unreal Engine 5 graphics running on a PS5. Both gaming powerhouses said this collaboration solidifies an already close relationship and strengthens their mutual objective to improve in state-of-the-art technology, entertainment, and socially connected online services.
A Match made in Heaven
It seems that both CEO’s for Sony and Epic already have those ‘lovin’ feelings’ for one another in a “you’re wonderful, no you’re wonderful’ moment, captured in separate statements regarding the investment.
“Epic’s technology keeps it at the forefront of game development and that is exemplified in the features of Fortnite,” said Sony CEO Kenichiro Yoshida. While Epic CEO Tim Sweeney, 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.”
Music? Could this be referencing the recent virtual Travis Scott concert in Fortnite, which drew more than 27 million people? Could more virtual concerts be on the way? At this point your guess is as good as ours but something that attracted that many people, surely can’t be a one and done experience.
What does it all mean?
With Sony investing in Epic Games, the true scope of the deal and partnership remains to be seen but we are sure that both Sony and Epic already have something in mind. The result of a strengthen collaboration between the pair can only mean a more exciting and unique gaming experience for both consumers and creators is on the horizon. A deal that highlights Sony’s portfolio of entertainment assets and technology and Epic’s social entertainment platform and digital environment can only mean great things.
Epic Games CEO, Tim Sweeney, mentioned that both parties plan to build a “more open and accessible digital ecosystem for all consumers and content creators.”
Why is the deal so important to Sony?
The answer is simple—console war! With both the Sony PlayStation 5 and the Microsoft Xbox Series X set to go head-to-head as they are due to release later this year, Sony needs alliances in the impeding battle to come.
That’s not to say that Epic Games’ Unreal Engine 5 and Fortnite will be married to Sony’s PS5 exclusively. Epic has made it known that their products will be available to publish across all platforms, as they like to remain neutral when it comes to making cross-platform technology.
It’s also important to note, that Sony only acquired a minority stake in Epic, not a controlling one. Sony seems to get no clear advantage from investing in Epic, as far as we can tell. What does Sony and Epic Games have in store for us gamers? We’ll just have to wait and see.
On a side note, if you made it to the end of the article and are wondering if Sony purchased a 1.4% stake in Epic Games for $250 million, what does that value Epic Games at as a whole? A staggering $17.86 billion is the number you’re looking for!