Epic Games, the video game developer that produced the hit game Fortnite, said Tuesday that it had raised $1 billion in its latest funding round. That has now pushed the company to an eye-watering $28.7 billion valuation overall. And it looks like the titan that is the Battle Royale hit shows no signs of slowing.
The latest round includes a $200 million investment from Sony Group Corporation which, according to the press release from Epic, “builds on the already close relationship between the two companies.” That suggests that funding may have already changed hands at some point, which seems likely given Sony’s push to invest in more diverse gaming and entertainment properties.
Epic Games CEO Tim Sweeney said the following, when remarking on the deal:
“We are grateful to our new and existing investors who support our vision for Epic and the Metaverse. Their investment will help accelerate our work around building connected social experiences in Fortnite, Rocket League and Fall Guys, while empowering game developers and creators with Unreal Engine, Epic Online Services and the Epic Games Store”
Meanwhile, Sony CEO, President and Chairman Kenichiro Yoshida added:
“Epic continues to deliver revolutionary experiences through their array of cutting edge technologies that support creators in gaming and across the digital entertainment industry. We are excited to strengthen our collaboration to bring new entertainment experiences to people around the world. I strongly believe that this aligns with our purpose to fill the world with emotion, through the power of creativity and technology.”
The funding comes on the heels of news that Epic had spent more than $400 over the last few years trying to make the Epic Games Store a thing. The company expects to keep spending more by the end of this year. A big part of those costs come from the minimum guarantees another funding that Epic offers for exclusive and free games on the EGS.
Despite these efforts, the company has had a heck of a time making users actually spend money and stick around. Sure, grabbing free games is nice, but the lack of key features and polish is crippling these efforts.