Epic Games is an interactive digital entertainment company and developer of three-dimensional gaming engine technology. The creator of popular video game Fortnite, Epic Games also helps game developers with the digital ecosystem to build, operate, and distribute video games. In this blog, learn more about Epic Games’ history and milestones and Epic Games’ founding story.

Epic Games’ History and Milestones

Epic Games’ Founding Story

Founded in 1991 by Tim Sweeney as a college student, Epic Games began as Potomac Computer Systems before rebranding to Epic MegaGames in 1992. Sweeney was fascinated with video games, more as a developer than as a player. While studying mechanical engineering at the University of Maryland, Sweeney created ZZT, an action-adventure video game that served as the company’s foundation. After ZZT gained local success, Sweeney realized the potential of making video game development a career, not just developing the games himself, but also building the tools for other developers to build video games themselves.

The Early Days

Sweeney and co-founder Mark Rein hired a small team and continued to produce new video games. In 1995, Sweeney developed the Unreal Engine, which at the time was a powerful, real-time 3D creation tool for video games, films, and other immersive experiences. Now with five iterations of the Unreal Engine, the original development was primitive but represented a significant technical achievement. The Unreal Engine saw commercial success, reaching 1.5M units sold by 2002 as Epic MegaGames adopted the simpler moniker of Epic Games and began licensing out the Unreal Engine to other game developers.

Epic Games’ Products

Its platform provides a comprehensive suite of tools for game development and distribution, in addition to producing its own video game titles.

Unreal Engine

Unreal Engine is a 3D creation tool that holds a 13% market share in the industry, according to Extern Labs.[1] Initially crafted for video game development, its rendering capabilities have been adopted across industries like film, television, automotive, and architecture. The platform incorporates advanced tools like Metahumans designed for creating digital humans and Twinmotion for architectural visualization to help bring developers’ visions to life. Epic Games has published five generations of the engine, most recently releasing Unreal Engine 5.4 in April 2024.

Fornite

Released in 2017, Fortnite gained global notoriety, especially in 2020. The game reportedly surpassed 650 million accounts in November 2023, representing a 30% increase from 500 million in 2022.[2] Its most popular game play, Battle Royale, features 100 players competing to be the last player or team remaining as they gather weapons, items, and resources. The game operates on a free-to-play model with revenue generated through in-game purchases of V-Bucks, which players use to buy cosmetic items like character skins or clothing and battle passes.

Epic Games Store

Launched in 2018 as a direct competitor to another online video game marketplace, Steam, the Epic Games Store provides a developer-friendly solution for video game distribution. The Epic Games Store only takes a 12% revenue cut of video game purchases compared to Steam’s 30% cut. In 2024, the it had 4,000 game titles available. It became available as a mobile app on iOS and Android devices worldwide in August 2024.

Epic Games’ Milestones

Over the years, Epic Games has reached numerous milestones in terms of traction, revenue, and awards. Some of its recent milestones are, but not limited to, the following:

In February 2024, The Walt Disney Company invested $1.5 billion to acquire an equity stake in Epic Games. Additionally, the two plan to collaborate on an all new Disney-based entertainment universe.[3]
According to Statista, Epic Games’s gross revenue is anticipated to reach $6.01 billion in 2025 and potentially grow to $6.21 billion in 2026.[4]
The Epic Games Story reached an all-time high of 70 million monthly active users in September 2024[5]

Final Thoughts

Epic Games has positioned itself as a leader in video game development. With a combination of game development, Unreal Engine technology, and distribution services, its goal is to serve the next generation of video game enthusiasts, players, and developers alike.

Are you ready to invest in startups? Sign up for a MicroVentures account to start investing!

SIGN UP FOR FREE

Want to learn more about MicroVentures portfolio companies? Check out the following MicroVentures blogs to learn more:

[1] https://externlabs.com/blogs/unity-vs-unreal/

[2] https://www.businessofapps.com/data/fortnite-statistics/#:~:text=Source:%20Sensor%20Tower,Fortnite%20Registered%20Users,150%20million%20in%2012%20months.

[3] https://thewaltdisneycompany.com/disney-and-epic-games-fortnite/

[4] https://www.statista.com/statistics/1234106/epic-games-annual-revenue/

[5] https://www.pocketgamer.biz/fortnite-maker-financially-sound-as-epic-games-store-hits-70-million-monthly-active-users/

*****

The information presented here is for general informational purposes only and is not intended to be, nor should it be construed or used as, comprehensive offering documentation for any security, investment, tax or legal advice, a recommendation, or an offer to sell, or a solicitation of an offer to buy, an interest, directly or indirectly, in any company. Investing in both early-stage and later-stage companies carries a high degree of risk. A loss of an investor’s entire investment is possible, and no profit may be realized. Investors should be aware that these types of investments are illiquid and should anticipate holding until an exit occurs.

MicroVentures Blog

MicroVentures’ Portfolio Company: Epic Games’ History and Milestones