Sony invested $250 million in Epic Games, creator of the battle royale game Fornite.
Both companies announced the move on July 9 and said the investment will bring them together in their joint mission to “advance cutting-edge technology in technology, entertainment and socially connected online services.”
Epic released Unreal Engine 5 graphics on a PlayStation 5 in May. In other words, companies have been working together for a certain period of time. This move makes a lot of sense for Sony to be at the forefront of entertainment and technology as it prepares to launch its next-generation console.
Sony’s latest console is in direct competition with Microsoft’s Xbox Series X, so every step it takes is crucial. “Epic’s powerful technology in areas like graphics has brought them to the forefront of game engine development with the Unreal Engine and other innovations,” said Kenichiro Yoshiada, president and CEO of Sony Corporation.
Yoshida also talked about the “revolutionary entertainment experience” provided by Fornite. The deal means Sony will delve deeper into collaborating with Epic and bring “consumers value” not just in games but in entertainment.
“We’re working together to create a more open and accessible digital ecosystem for all consumers and creators,” said Tim Sweeney, CEO and founder of Epic Games.
As Epic Games is a privately held company, its financials are not widely disclosed, but VentureBeat reported that in 2019 the company reported revenue of $4.2 billion and earnings of $730 million before taxes and expenses.