Sony picks up a minority stake in Epic Games for $250 million
Right before the launch of its PlayStation 5 console
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In a strategic move,Sonyhas announced that it will invest $250 million and acquire a minority stake inEpic Games, the company behind the highly popular games likeGears of WarandFortnite. While both the companies had been working closely together in the past, this deal is aimed at expanding their collaboration further.
BothSonyandEpic Gamesare major forces on their own when it comes to the gaming industry. Sony has an impressive portfolio of gaming hardware like PlayStation consoles, including the upcomingPlayStation 5, some exclusive game titles and a cloud gaming service known asPlayStation Now.
While Epic Games has a wide range of popular games under its kitty withFortnitebeing the most prominent one apart from theUnreal Enginewhich is used by developers to create games. While the deal is still pending for regulatory approvals, it is different from Epic’s earlier bid to raise $750 million.
What does this deal mean for Sony?
With the PlayStation 5 slated to debut in a few months, this deal is strategically important for Sony as it can give the Japanese company an edge over its rivals likeMicrosoftand Nintendo. While Epic Games has stated that both Unreal 5 and Fortnite will work on all the gaming platforms, both the companies have not revealed as to what Sony stands to gain specifically from this deal apart from securing another ally.
Even though Sony likes to protect its proprietary technology and since it has taken a controlling stake in Epic Games, it has been claimed that both the companies will focus on creating a “more open and accessible digital ecosystem for all consumers and content creators.”
Since Unreal Engine is also used actively in film production, Sony may stand to gain on that front as well. Even Epic Games CEO Tim Sweeney highlighted that both Sony and Epic have created businesses at the intersection of creativity and technology and they share a vision of real-time 3D social experiences that will lead to a convergence of gaming, films, and music.
Via:VentureBeat
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Jitendra has been working in the Internet Industry for the last 7 years now and has written about a wide range of topics including gadgets, smartphones, reviews, games, software, apps, deep tech, AI, and consumer electronics.
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