Sony, Kirkbi invest $2 billion in Epic Games

(Image Courtesy: Epic Games)

Epic Games has raised $2 billion in funding from Sony Group Corporation and Kirkbi, the holding and investment company of the Lego group, the Fortnite franchise creator has said.

Both Sony and Kirkbi invested $1 billion each and the funds would be used to "build the metaverse and support its continued growth ", Epic Games said on April 11.

The goal is to create a new social entertainment platform that explores the connection between "digital and physical worlds, it said

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Epic said it would continue to have a single class of common stock outstanding and controlled by CEO and founder Tim Sweeny.

The funding will, "accelerate our work to build the metaverse and create spaces where players can have fun with friends, brands can build creative and immersive experiences and creators can build a community and thrive,” said Sweeny in a press release.

The metaverse is an immersive 3D version of the internet tipped to transform online interactions, with vast number of users sharing one seamless world. So far, metaverse hasn’t moved much beyond VR avatars in a digital space.

Of the three companies, Epic already has done something similar with Fortnite. The popular free-to-play game regularly hosts online events like music concerts which happen in-game. Players can attend these events with others from around the world.

Metaverse is being looked at as the next big frontier for tech companies. Facebook has already gone all-out and bet big on a connected virtual future, even changing its to Meta.

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“We are also confident that Epic’s expertise, including their powerful game engine, combined with Sony’s technologies, will accelerate our various efforts such as the development of new digital fan experiences in sports and our virtual production initiatives,” said Sony Group president and CEO Kenichiro Yoshida in a press release.

Søren Thorup Sørensen of the Kirkbi investment group said the investment "will accelerate our engagement in the world of digital play, and we are pleased to be investing in Epic Games to support their continued growth journey, with a long-term focus toward the future metaverse”.