As Epic Games secures new funding and achieves a valuation of almost $20 billion, it’s enterprise applications of VR and AR in the automotive and healthcare industries where the maker of Unreal Engine could see future expansion
➨ Epic Games has raised $1.78 billion in funding, valuing the maker of Unreal Engine at $17.3 billion
➨ The funding round includes the $250 million strategic investment from Sony Corporation announced last month
➨ Unreal Engine’s “strong AR and VR capabilities” will help Epic expand its operations in industries such as medical and automotive, “which are increasingly experimenting with both AR and VR”
Epic Games has raised $1.78 billion in funding, valuing the maker of Unreal Engine at $17.3 billion.
The funding round includes the $250 million strategic investment from Sony Corporation announced last month.
Additional investors include Baillie Gifford and David Tepper, as well as Blackrock, Fidelity, Lightspeed Venture Partners, Ontario Teachers’ Pension Plan Board and T. Rowe Price Associates.
Existing investors KKR and Smash Ventures also added to their 2018 investment.
Tim Sweeney, founder and chief executive officer of Epic Games, said: “Having the support of leaders in the financial community accelerates Epic’s efforts to build a new kind of digital ecosystem using real-time 3D technology, services that connect hundreds of millions of people, and a digital storefront that offers a fair business model. We are delighted to have them as part of the Epic family.”
Speaking last month, Kenichiro Yoshida, chairman, president and chief executive officer of Sony Corporation, said he plans to use the investment to “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”.
Market intelligence firm GlobalData puts the success of Epic down to the Unreal Engine platform.
Rupantar Guha, associate project manager for thematic research at GlobalData, said: “This platform demonstrates the company’s capabilities in computer graphics, 3D technologies, cross-platform offerings, augmented reality and virtual reality, and its power and flexibility are garnering the company’s success and will allow it to reach beyond the gaming sector to film-making, architecture and medical systems.”
According to Guha, it’s Unreal Engine’s “strong AR and VR capabilities” that will help Epic expand its operations in industries such as medical and automotive, “which are increasingly experimenting with both AR and VR”.
Epic is “well positioned to benefit from the growing demand from enterprises for immersive content”, Guha said.
GlobalData expects Epic to use the new funding to expand the Unreal platform, as well as give the Epic Gamestore and its customer retention strategies a boost.
Guha said: “The influx of cash will help Epic cement its leadership position in themes such as game development, esports, social media, ecommerce and mobile gaming.”
“Epic is also likely to use the money to develop new monetisation strategies for its free offerings, including games and the Unreal Engine platform.”
Enterprise demands for immersive content will stand Epic in good stead.
Unreal Engine is well known for its gaming achievements, most notably Fortnite. But the need for gamified experiences with a strong platform underpinning them will likely attract enterprise customers in search of powerful immersive technology.
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