Sony Invests $250 million into Epic Games, the creators of the Unreal Engine

Sony has confirmed that it has made a “strategic” investment into Epic Games, the creators of Fortnite and the Unreal Engine, acquiring a minority stake in the company for £250 million. 

This investment is designed to cement the already close relationship between both companies, allowing both companies to broaden their collaboration when it comes to future technological developments.

Even after this investment, Tim Sweeney remains the majority shareholder of Epic Games, allowing Epic Games to be free from the control of its investors. Currently, Tencent owns a 40% stake in Epic Games, and Sony is said to now own 1.4% of the company, highlighting how valuable Epic Games has gotten since 2012. When Tencent purchased 40% of Epic Games, it cost the Chinese giant $330 million. Now, Sony’s paying $250 million for an alleged 1.4% of the company eight years later. 

With Epic’s recent growth, it is easy to see why Sony would make this kind of investment, both financially and technologically. Epic Games creates the technology behind many of today’s best games, giving Epic Games a huge slice of the money within the gaming market. Add in the success of Fortnite, and Epic Games has also become one of the most successful game developers of recent history. If current trends continue, Sony’s $250 million investment could be worth a lot more than that in a few short years. 

A few months ago, Epic Games showcased Unreal Engine 5 running on Sonys PlayStation 5 hardware. Epic Games has confirmed that this demo was created before Sony planned its investment in the company. When asked about the investment and Epic’s PlayStation 5 demo, Tim Sweeney stated that “I guess they liked it!”