MULTI Epic Games is now worth $17.3bn, ~6 times the net worth of Valve

CerebralTiger

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Unreal Engine provider and Fortnite developer Epic Games has been valued at $17.3 billion.

The updated post-money equity valuation comes after the close of a successful funding round, which has seen a further $1.78 billion poured into the company.

Epic was worth an estimated $8 billion just two years ago in the wake of Fortnite's early success.

The round was a mix of primary capital and secondary purchases from employee equity holders, and includes the recently announced $250 million strategic investment from Sony Corporation.

In comparison, a "most conservative estimate" of Valve's net worth amounts to over $3bn.
 

Necrokiller

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What a pathetic attempt by Shikari to shit on Valve. Sad really.

 
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CerebralTiger

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Shikari tou gya PG se (aur apparently, Era se bhi lol). Get over yourself, Gwynbleidd17.

Thread title is based on the article. I just added a relevant comparison.

All that Fortnite money !
In addition to UE4 licensing fee and the success of EGS. Epic's revenue will see further increase with UE5 being used for VFX in several Hollywood projects.
 
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I mean, R* is pretty rich but at least it has some great games and so does Valve. Epic is just...meh. Maybe they'll make some great stuff with those newly acquired studios and maybe Sony can help them with that (at least on PS5).
 

CerebralTiger

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I mean, R* is pretty rich but at least it has some great games and so does Valve.
Wrt company financials, Valve makes for a good comparison with Epic due to their mutual areas of interest.

1. Epic invests in a game engine for commercial purpose, as does Valve. Both have their own criteria for engine licensing fee.
2. Epic now invests in a storefront/client on PC, and Valve has been doing this since nearly 2 decades.
3. Epic makes F2P GAAS games like Fortnite and Paragon, and Valve does the same with a number of F2P games like CS:GO and DOTA 2.
4. Epic has worked on a VR game called Robo Recall, and Valve has worked on Half-Life 3 and has also invested in VR as a whole by developing its own hardware and software API.
 
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^ yeah, that seems fine but I'm just thinking of the games from both companies. I kind of don't like a company making so much money without having great games to offer, which is what Epic looks like to me. Valve, on the other hand, has great stuff like HL, Portal, DOTA, CS, L4D, etc. I don't think Fortnite and Gears stand up to this apart from popularity.
 
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Necrokiller

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New court filing shows Epic has lost more than $450 Million on the EGS in the past 2 years

  • Currently EGS has more than 160 million registered users and more than 56 million monthly active users
  • EGS has 400 games published by more than 200 developers
  • EGS currently supports 29 different currencies and has pricing in more than 190 countries and 30 regions
  • EPIC expects EGS to become profitable in 2023
  • At present, EGS has not yet achieved profitability because it has increased a lot of costs in order to gain market share
  • The 12% distribution amount charged by EGS is sufficient to cover the operating costs of EGS
  • EPIC lost approximately US$181 million on EGS in 2019, approximately US$273 million in 2020, and estimated losses of approximately US$139 million in 2021
  • Apple uses the application review process to give priority to its own applications to pass the review, and use this to compete against competitors
  • Apple does not use all its own rules for its own apps


Epic yikes!!
 
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Chandoo

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I don't think they care in the slightest lol, the Fortnite money more than balances it out and this gets people registered on their services.
 

Necrokiller

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They want people to buy the games on EGS, not just register lol

The conversion from Fortnite players/people who are registered for free games, to paying customers is quite poor on the service. The current strategy of timed exclusivity, free games and $10 coupons isn't working so well.
 

faraany3k

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I think Epic joining the PC storefront is beneficial for PC gaming.

I mean they single handedly brought Kingdom Hearts Series to PC. Plus their gaming engine is the preference of all developers.
 

CerebralTiger

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Epic yikes!!

Today Epic Games announced that it completed a $1 billion round of funding, which will allow the company to support future growth opportunities. Epic's equity valuation is now $28.7 billion.

This round includes an additional $200M strategic investment from Sony Group Corporation, which builds on the already close relationship between the two companies and reinforces their shared mission to advance the state of the art in technology, entertainment, and socially-connected online services. Other investment partners include Appaloosa, Baillie Gifford, Fidelity Management & Research Company LLC, GIC, funds and accounts advised by T. Rowe Price Associates, Ontario Teachers’ Pension Plan Board, funds and accounts managed by BlackRock, Park West, KKR, AllianceBernstein, Altimeter, Franklin Templeton and Luxor Capital. Epic continues to have only a single class of common stock outstanding and CEO Tim Sweeney remains the controlling shareholder of the company.
Epic yoooo!!
 
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iampasha

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I think the fact that PC have juggernauts f2p games like CS:GO, Valorant, LoL, DoTA and other smaller ones makes fortnite on PC a much harder sell...plus it's only on epic store and not steam that may also play a role

On the other hand consoles don't have that luxury, I mean can we name any big f2p console game aside from fortnite and warzone?
 

Necrokiller

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I think the fact that PC have juggernauts f2p games like CS:GO, Valorant, LoL, DoTA and other smaller ones makes fortnite on PC a much harder sell...plus it's only on epic store and not steam that may also play a role
Yep. Both League of Legend and Dota 2 tournaments dwarf other games. CoD is a cafe tourny infront of them lol
 
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