- Epic Games has secured a whopping $ 2 billion in additional funding from Sony and KIRKBI to promote its Metaverse ambitions.
- Some see the Fortnite developer’s position of porting games to Web3 as a challenge, while others see this move as positive.
The developers of Fortnite, one of the world’s most popular games, have raised $ 2 billion in additional funding to accelerate its Metaverse ambitions.
Epic Games said Monday that it received $ 1 billion each from existing investors Sony Group Corporation and KIRKBI, a family-owned investment company behind the Lego Group.
After the transaction’s regulatory approval, Epic’s post-money equity valuation will be $ 31.5 billion.
The new funding will be used to build Epic’s vision for the Metaverse and support its continued growth. statement.. Epic says he is trying to create a novel “social entertainment” by exploring the connection between the digital and physical worlds.
Kenichiro Yoshida, President and CEO of Sony Group Inc., said:
Participation in Sony’s round $ 250 million cash injection For epics after 2020 $ 200 million after one year. Epic’s accumulated capital is reportedly planned for a developer’s project to build a “real-time 3D social experience that connects games, movies and music,” CEO Tim Sweeney said at the time. increase.
While money is flowing, there is growing question about how best it is for developers to try to monetize their efforts in a world that appears to be designed for digital asset diversification and personal ownership. ..
“What they’ve built at Fortnite, what they call the Metaverse, is a closed ecosystem, less open, dependent on external investment, and dealing with large intellectual property rights. I think. Web3 Metaverse, “said Cliff Cawley, director of Lost Relics and Codebit Labs.
“Some companies seem to use the term Metaverse as another marketing term to keep their balance sheets profitable,” Cawley added...
Fortnite is a very popular free battle royale game where 100 players are dropped onto the island and take the top spot by crafting, shooting and looting.
Models are free to play, but Epic makes significant profits through microtransactions through the in-game store. Players can buy skins, emotes, and sprays in exchange for the in-game currency of a company called V-Bucks. V-Bucks are purchased using Fiat.
It’s V-Bucks that Epic uses to turn most of its profits. In 2018, the company generated $ 5.5 billion in total revenue from Fortnite titles and $ 3.7 billion the following year, according to the company. Leaked documents Last year’s Apple v. From the Epic Games trial.
“It’s almost impossible for Epic to smoothly migrate Fortnite to Web3 games,” said Simon Kertonogoro, CEO and founder of My Metaverse. “The game mechanics and monetization are already set to run in the Web2 way.”
Web3 refers to the concept of a decentralized Internet where ownership of data is locally owned by an individual. The metaverse, on the other hand, refers to an individual’s experience based on the intersection of technologies such as virtual reality, blockchain, and Web3 infrastructure.
Both concepts are in their infancy, but development and large-scale funding continue to push the boundaries and seek new sources of revenue to jointly share the success of a particular title.
Revenue models need to be hashed, but some blockchain game developers believe that Epic’s move into the Metaverse will help them be at the forefront and center of the emerging industry.
“We need to be sure to anticipate more innovation in this area as new economic models are introduced,” said Brian Akaka, CMO of Laguna Games, the developer of the next NFT title. I am. Cryptographic unicorn I told Blockworks.
“It’s important for game developers to incorporate new mechanics as a natural part of gameplay, rather than treating them as add-ons.”
Kertonogoro believes Epic is ready to take advantage of a brand new title centered around the concept of monetizing in-game assets, giving players the option to share the profits of Epic’s sales.
“In general, Tim Sweeney and Epic Games are smart enough to know that in the end, the best solution for the player will always win,” he said.
Epic continues to distribute only one type of issued common stock and is controlled by the CEO and founder.
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