Epic Games

Epic Games was founded in 1991. The company has the game Fortnite, Unreal, Gears of War, Shadow Complex and Infinity series Blade (for 2020).

History

2024: Apple blocks Epic Games EU app store

In March 2024, Apple banned Epic Games from opening its own app store for iPhone users in Europe, which the Fortnite creator believes is a response to criticism of the tech giant and a violation of new antitrust rules in the region.

Apple has terminated its Epic developer account, preventing the gaming company from releasing Fortnite and Epic Games Store on Apple's iOS devices in the EU. Epic said it was a "serious breach" of the new EU digital markets law, which aims to boost competition in the industry.

2023: Lay off 16% of staff or 900 employees

In September 2023, it became known that Epic Games, the creator of Fortnite and Unreal Engine, is laying off about 900 employees, or 16% of its staff - sources.

Epic is one of the largest private video game companies in the world. Chief Executive Officer Tim Sweeney at this time owns the majority of the shares, and Chinese conglomerate Tencent Holdings - 40%.

2022: Raising $2 billion in investments and an estimate of $32 billion

On April 11, 2022, Epic Games announced that it had raised $2 billion in investments. According to the results of the funding round, in which Sony and the investment company Kirkbi participated (invested $1 billion each), the game developer was valued at $32 billion.

The announced investments are aimed at developing a metaverse designed to "unite the digital and real worlds." The companies are set for long-term cooperation, and Kirkbi (owner of children's designer developer Lego) is no less interested in this than Sony and Epic Games itself.

On April 11, 2022, Epic Games announced that it had raised $2 billion in investments.

Thanks to this investment, we expect to expand and deepen cooperation [with Epic Games] to find opportunities that will lead to the formation of new values ​ ​ in the entertainment sector, Sony said in a statement.

Epic CEO Tim Sweeney stressed that Epic always needs partners "who share a vision for the company and the future of entertainment," and these companies include Sony and Lego.

This investment will accelerate our work to create a metaverse and spaces where players can have fun with friends, brands can create creative and immersive experiences, and creators can build communities and thrive, he added.

Earlier in April 2022, Epic Games and Lego announced a long-term partnership in the creation of metaverse, virtual spaces for work and entertainment. The ultimate goal of such a partnership is to create a safe metaverse for children of different ages, within which they can positively communicate, play and engage in creativity.

What shares Sony and Kirkbi received in Epic Games following the investment deal is not reported. It is only noted that Tim Sweeney will retain a controlling stake in the gaming company.^[1]

2021

Apple trial win in App Store payments case

On September 10, 2021, Judge Yvonne Gonzalez Rogers ruled on an important lawsuit between Apple and Epic Games.

The court ordered Apple Inc. to allow developers to direct consumers to other ways to pay for mobile apps, a major blow to the iPhone maker.

Apple will be forced to change its App Store policy and ease control over app purchases.

The decision could hit App Store profitability hard, with the App Store generating more than $20 billion a year with a profit margin of more than 75%, according to analysts.

Raising $1 billion, estimated - $28.7 billion

In mid-2021, video game developer Epic Games announced a $1 billion investment, raising the company's valuation to $28.7 billion.

According to Epic Games, Sony invested $200 million, which also invested in a video game developer in 2020. Other investors in the latest investment round include Appaloosa, Baillie Gifford and Fidelity. After the last round, which ended in August 2020, Epic Games' estimate grew by 66%, then the figure was $1.8 billion.

Game developer Epic Games raised $1 billion and was valued at $28.7 billion

We are grateful to our new and existing investors who support our vision for Epic and Metaverse. Their investments will help accelerate our work building social engagement in Fortnite, Rocket League and Fall Guys, and provide developers and game creators with the opportunity to support the development of Unreal Engine, Epic Online Services and Epic Games Store, "said Epic Games Founder and CEO Tim Sweeney.

Sweeney remains the controlling shareholder in the company, Epic Games said.

Epic makes a big bet on the so-called "metaverse." For example, Fortnite hosted large-scale virtual concerts with artists such as Travis Scott and Marshmello. Other companies, including, are Microsoft Roblox also actively investing in this trend. Epic is expanding in other areas, including the distribution of PC games through the Epic Games Store, which is a competitor to Steam from. In Valve March 2021, Epic Games announced the purchase of Mediatonic, the British studio that is the creator of the popular Fall Guys game. The game appeared in the summer of 2020 and immediately became a hit among millions of players forced to stay at home due to restrictions. COVID-19^[2]

2020

Lawsuits against Apple and Google after removing Fortnite from app stores

On August 14, 2020, it became known that the developer of computer games Epic Games filed lawsuits against Apple Inc. and Google (part of Alphabet Inc.), accusing the company of violating antitrust laws.

The company filed lawsuits after Apple and Google removed Fortnite, a game developed by Epic, from their app stores. This is due to the fact that the company invited users to make purchases inside the game directly in order to reduce their cost.

Apple and Google charge a 30% fee on all purchases from their app stores. Epic's first lawsuit, filed against Apple, says the company will seek "an end to the unfair and competitive actions that Apple is taking to illegally maintain its monopoly." Apple receives about $30 million a month from Fortnite-related transactions, writes Evercore ISI analyst Amit Darianari, referenced by MarketWatch. The company received revenue of $13.2 billion in the second quarter of 2020 from the services segment, which includes the App Store. He expects the trial to be a "multi-year process that will be challenged at every level of the U.S. judicial system."

Epic has long been trying to avoid paying the commission. The company previously sold the platform app Android through its own game store to avoid paying the store a commission. Play Store Epic subsequently placed Fortnite on the Play Store, but Google removed it for the same reason as Apple, after which Epic filed a similar lawsuit against Alphabet.

An Apple spokesperson said Epic resorted to the changes without obtaining the company's approval and did so to "express its intention to violate App Store rules regarding in-app payments." The report also said that Apple "will make every effort to work with Epic to resolve violations so that they can return Fortnite to the App Store."^[3]

The company's valuation is $17.3 billion

In August 2020, Epic Games Inc., the video game company that developed Fortnite, said that after completing a new round of funding, its business is valued at $17.3 billion. The deal makes Epic the fifth most important tech start-up in the U.S.

The company said total funding was $1.78 billion. This includes investments from Baillie Gifford, funds managed by BlackRock Inc., Fidelity Investments and Lightspeed Venture Partners. The figure also includes a $250 million investment made last month by Sony Corp., as well as purchases from the company's shareholders.

Notes