Epic Games has announced another $1 billion funding round, with Sony investing $200 million

1 : Anonymous2021/04/13 13:25 ID: mq27gy
Epic Games has announced another $1 billion funding round, with Sony investing $200 million
2 : Anonymous2021/04/13 13:41 ID: gudb8es

This investment is by Sony Group, rather than Sony Interactive.

All this means is that Unreal Engine is becoming a vital part for a lot of media sectors, from games to TV / movies. Sony Music even setup an Immersive Music program that will utilise UE to incorporate music across various mediums (probably including interactive concerts ala Fortnite).

ID: guepgsg

I mean even the mandalorian uses UE.

ID: gufnrqs


Eventually, even the cheapest TV shows will incorporate virtual sets. It's another sector that UE is primed to absolutely dominate in.

ID: gudbjoh

No, it definitely has something to do with the SIE division. You realise that a lot of games with relations to Epic have some sort of exclusivity with PS5, Sony has timed console exclusive deals for games that coincidentally also have the same deal with Epic for the Epic Games Store.(Kena, Oddworld, Bugsnax, Solar Ash, Jett the far shore, etc.)

ID: gudckq9

Maybe, but Sony group made this move, not SIE. This was done above Jim Ryan’s head, and might have more implications than just games

ID: gudc66m

I didn't say it had nothing to do with gaming.

It's to do with all the sectors of Sony, which is why Sony Group made this investment (and the $250m one from last year), not Sony Interactive.

If it was only to do with gaming, then Sony Interactive makes the investment on its own, like when they bought the studio behind Wwise as well as Insomniac. SIE specifically bought those, not Sony Group.

ID: gudh37u

It can be both.

But I think you’re making a stretch about the exclusivity comparaison. For example Sony mostly does timed exclusives for console while leaving the PC to come out whenever (depending on the game). It just happens that Epic is also spending money on timed exclusive while Steam isn’t and Epic exclusivity doesn’t deal with console. I don’t think they are on working together on that part.

But you have to realize that Unreal is getting bigger than gaming. It’s being used a lot now with movies and TV and Sony realizes that and wants to make sure they are at the forefront of that technology.

ID: gudbs2l


ID: gue4o9j

You're reading into this too much. This is an investment which almost always gets connected to the holding company/lead company because of how the finances end up working out. At the end of the day it just means the relationship is even stronger.

ID: guexdpy

I think he’s right. Even after Sony made changes to the company on April 1st, when Sony music bought Som Livre on the same day, it was Sony Music making the purchase rather than Sony Group according to the press release from Sony. Sony Group was mentioned as the owner of Sony Music rather than the party making the purchase. Epic’s Unreal Engine is definitely being used by other parts of Sony so the investment makes sense as one for the whole team.

3 : Anonymous2021/04/13 15:14 ID: gudncgg

remember people Sony is bigger than just SIE/PlayStation

Unreal Engine has also been used in anime, manga, music, film, live events (ie Nijisanji and music events/videos). not just games.

ID: guezvyk

I love the fact that The Mandalorian uses it in real-time as the actors are on set. Really changed the game for actors tired of working with green screens.

ID: gue7q8d

And Sony owns an anime monopoly in the west to boot along with all the VA talent.

The PS5 era could see Sony moving to completely and utterly dominate the industry with their reach.

ID: gufbu59

Netflix is almost double its number of anime releases this year, stepping up its fight for original content that appeals to Anime viewers. -plus Crunchyroll is really bad in japan with many having to use a vpn

japan times

ID: guedn4j

While sony owns alot of anime stuff. The crunchyroll buyout may get blocked.

ID: gufmdsw

They aren’t close to “completely and utterly” dominating the industry lol. The acquisition they attempted to make haven’t even been approved yet

ID: guerxpk

Even car infotainment

ID: gufbxs2

wow i didn't know that one

4 : Anonymous2021/04/13 13:50 ID: gudccir

They had already invested $250M a few months ago.

It's just an investment.

It's to strengthen the relationship between Epic and Sony, and to be able to lower their costs (or increase their shares), to be able to create events with Sony Music artists on Fortnite at low cost, to add PlayStation characters in the game and increase their share, to be able to sell games on the Epic Game Sotre and increase their share, but also to use Epic's technologies such as the Unreal Engine "at a lower cost".Don't forget that Unreal Engine is starting to be used in movies/TV-Show also, which could benefit Sony's movie business too.

For gamers it will probably not bring anything concrete.

ID: gudf4r0

Epic also acquired RAD Game Tools (Oodle Kraken compression).

5 : Anonymous2021/04/13 21:45 ID: guf3d1o

I think the real question here lies with the Ontario Teachers’ Pension Plan Board ... what are they up to investing in epic? And how much did they spend to get mentioned by name alongside Sony and other investment firms?

The Ontario teachers are planning something, I can feel it

ID: gufji9p

They have a crazy amount of money surprisingly. They used to own MLSE(Owners of the Leads and Raptors) before Rogers and Bell bought over their share.

6 : Anonymous2021/04/13 13:39 ID: gudb294

200,000 dollars are ready with a million more on the way.

Somebody had to do it

7 : Anonymous2021/04/13 17:38 ID: gue6xjj

Be aware that this is an investment by Sony Group, not Sony Interactive. This isn't a Playstation specific investment or anything, they're probably just seeing how important Unreal Engine is becoming outside of gaming, such as it's use in The Mandalorian.

8 : Anonymous2021/04/13 14:03 ID: gude01p

Good to see Sony investing their money wisely. Unreal Engine is the best. The should remaster the old Unreal games as graphical tech demo's exclusive to PS5.

ID: guenzkb

Decima engine is really good as well. At any rate unreal isn't just used in gaming

9 : Anonymous2021/04/13 14:00 ID: guddkjw

Let's hope Epic makes a remake of Unreal 1 on PS5. 😉

10 : Anonymous2021/04/13 18:48 ID: gueg99z

Hopefully more Playstation exclusives.

11 : Anonymous2021/04/13 19:04 ID: gueif1h

What do you think, would it make sense thag they are preparing a Game Pass competitor for PC/PS5? Together they could do it

ID: gufmuuk

They will fail in the PC market, EGS is arguably the most hated launcher

12 : Anonymous2021/04/13 15:15 ID: gudnfhn

I heavily suspect Epic to make a game for PS5, they've been quite tight with Sony for a while now and I wouldn't be surprised if their relationship results in an exclusivity.

ID: guebugc

SONY' engine team, ICE, literally worked with them to develop UE5

13 : Anonymous2021/04/13 14:13 ID: gudf9dk

It means that the relationship is stronger and one day Sony may buy Epic. The same way they are courting From Software's parent company. $200M isnt small monies and you dont do that without cashing chips later.

ID: gudjsb0

Epic is valued at nearly $28b and they haven't even gone public yet.

What I'm trying to say is Sony isn't buying Epic for over $30 billion.

If they ever had those intentions, the time to do it would have been back in 2012 when the entirety of Epic could have been got for around $1 billion. Tencent bought 40% of Epic for $330m in 2012. Whereas now Sony's $450m investment in Epic only nets them a couple of percent.

And they aren't courting Kadokawa. Unless you're trying to say that Sony Music (Aniplex) is also courting CyberAgent. The strategic partnership for all three was to strengthen each others cross media pillars revolving around anime. It's not a move for one to buy the others.

ID: gudk1rs

Oh yeah. You're probably right. But I'd like to see what the future holds.

ID: gudm1ei

Kadokawa is a strategic partnership, also Kadokawa paid out of pocket for the Sony and Cyber shares

ID: gudkvfl

I don’t think Sony or MS could buy epic any time soon

I think what Sony has identified is a very good partner for them in both tech and PC markets and neither Sony nor Epic compete with each other.

14 : Anonymous2021/04/13 17:20 ID: gue4gje

Credit Suisse and BoFA Securities acted as joint placement agents to Epic, and Wilson Sonsini Goodrich & Rosati provided legal counsel to Epic.

Man I wish I worked at BoFA, how fun

15 : Anonymous2021/04/13 22:21 ID: guf7orr

Why is Sony investing so much in Epic?

ID: guf9f5m

Epic games and the unreal engine are a huge powerhouse thst backs a huge amount of titles across all gens and consoles

16 : Anonymous2021/04/14 00:05 ID: gufjtoo

is this common for companies as established as epic to be doing funding rounds? i typically associate that more with start ups.

17 : Anonymous2021/04/13 13:37 ID: gudaqqi

So they do this but can’t fund Day’s Gone 2? Ok.

ID: gudc2pd

I don’t expect GaMeRz to know about business but you do realise these things are not mutually exclusive? This investment is also from Sony Group not SIE. Try to read and understand what you are typing before you do it next time.

ID: gudboya

Oh nooo poor Sony Bend giving the freedom to do a whole new IP that a lot of dev teams would kill to be able to do

ID: gudd3fv

It wasn't this vs that.

ID: gude4xr

This is Sony corporate, not Sony Interactive Entertainment investing. This is happening in New York and Tokyo offices, well over anyone at PS’s heads.

ID: gudbecg

It's not even the same part of the company.

ID: gudbmm7

Just cause you can doesn't mean you should fund it.

They rejected the pitch, most likely Sony didn't like the story and co-op portion of it and just canned it and figured it would be better for Bend to work on something new.

They didn't say never either, Bend could do another game or more and then return to Days Gone, nothing in the rule book that says you have to finish a franchise before doing something else.

ID: gudb1rh

Not funding Days Gone 2 wasn’t about money but Sony Bend’s time being more useful doing something else, the devs keep getting paid regardless.

19 : Anonymous2021/04/13 13:44 ID: gudbln2


20 : Anonymous2021/04/14 00:13 ID: gufkpyo


his point is that one of the cases working through the court in the us is about how apple has their monopolized walled garden where they take 1/3 of all sales, including in-app purchases.

companies are trying to gain access to ios users without having to go through the appstore, as well as process their own payments in app (sidestepping the mandate to exclusively process payments through applepay).

IF the companies challenging apple win, it would be a domino effect that has MAJOR implications for sony and ms's console marketplaces since it would set a precedent that could be applicable to any proprietary platform with an app store.

21 : Anonymous2021/04/13 13:51 ID: gudchp4

unreal engine 5 for the last of us remake REMAKE 2.

22 : Anonymous2021/04/13 13:34 ID: gudag95

Whats the purpose ? Does this give them Unreal engine 5 access before anyone and similar technologies ?

23 : Anonymous2021/04/13 13:37 ID: gudat5m

Nope. It’s just like buying stock.

24 : Anonymous2021/04/13 13:40 ID: gudb48m

There might be exclusivity agreements with some games published by Epic, or some other deal of some sort. This is definitely not just a stock purchase, it probably has something to do with PlayStation

25 : Anonymous2021/04/13 13:44 ID: gudbmgu

Nah! it cant be that simple.

Nanite is a big deal in the game industry as far as i know. It is very different than existing streaming solutions.

If i were sony i would want to get early access to it and maybe some license to use it in their own engine for god of war ragnarok or something.

26 : Anonymous2021/04/13 13:40 ID: gudb48i


27 : Anonymous2021/04/13 13:41 ID: gudbae5

its financials lol. If Epic blows up, Sonys investment grows too, and they get a larger return one day.

28 : Anonymous2021/04/13 13:44 ID: gudbmww

If Epic blows up


29 : Anonymous2021/04/13 13:55 ID: gudcxyi

Dont see nintendo or microsoft investing, they should have lot of cash lying around ?

Its like tim only sells it to china [their entire cartoon industry is based on epic unreal engine ] and Sony.

30 : Anonymous2021/04/13 13:47 ID: gudby81

So they can do their summer showcase inside Fortnite!

Nah, it’s legit just to invest in Epic and grease their palms. I’m sure it would lead to something more later down the road but really, who knows at this point. This investment has implications for both their gaming and movie divisions, since its Sony Group doing the investing.

31 : Anonymous2021/04/13 14:02 ID: guddudw

I can see them using it for upcoming movies [ bit off topic : just i cant picture tom holland for every game character for some reason - spiderman, uncharted, ...] , but im curious to know what it would do for games as of end of this year/ next year.

32 : Anonymous2021/04/13 20:07 ID: gueqtuu

Epic games? So does this benefit Paragon/it’s successors in any way?


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