July 10, 2020: Which company do you think will have a huge impact on the entertainment industry? Not Netflix or Amazon Disney, it is going to be Epic Games in the next ten years.
Sony announced an investment of $250 million in Epic Games. The investment grabbed a share of only 1.5% of Epic even though the numbers look huge. In 2012 when Tencent invested $330 million got 40% of the share with Epic valued at $825 million. In 2020 when Sony invested $250 million got 1.5% of the share with Epic valued at $17 billion.
Sony already had a close relationship with Epic as they debuted Unreal Engine 5 on PS 5 recently. However, this investment is seen to go in a different direction and move into the next level of Entertainment.
“Epic’s powerful technology in areas such as graphics places them at the forefront of game engine development with Unreal Engine and other innovations. There’s no better example of this than the revolutionary entertainment experience, Fortnite. Through our investment, we will explore opportunities for further collaboration with Epic to delight and bring value to consumers and the industry at large, not only in games but also across the rapidly evolving digital entertainment landscape,” said Kenichiro Yoshida, Chairman, President, and CEO, Sony Corporation.
“Sony and Epic have both built businesses at the intersection of creativity and technology, and we share a vision of real-time 3D social experiences leading to a convergence of gaming, film, and music. Together we strive to build an even more open and accessible digital ecosystem for all consumers and content creators alike,” said Tim Sweeney, Founder, and CEO of Epic.
We have already seen Epic in the entertainment space with famous shows and games. The investment from Sony is with the future need for support from Epic for their movies and other entertainment industry material. This collaboration will give a better tomorrow to look into the Entertainment sector.