“Epic Games Store will welcome games that make use of blockchain tech provided they follow the relevant laws, disclose their terms, and are age-rated by an appropriate group.” — Epic Games CEO Tim Sweeney
Established in 1991 by Tim Sweeney, Epic Games is an American company headquartered in North Carolina with more than 40 offices globally. The company is a global leader in the interactive entertainment industry and a 3D engine technology provider. Among its most popular games is Fortnite, a free-to-play battle royale game. Epic Games also operates Unreal Engine, a real-time 3D creation tool that powers technology across the gaming, film, TV, automotive, architecture, simulation and manufacturing sectors. Epic Games recently forayed into the cryptocurrency industry via a blockchain-based game and has positioned itself as a major player in the GameFi industry despite its newcomer status.
New game launches were relatively slow amid the crypto winter. However, Epic Games managed to raise $2 billion in an investment round led by Sony and Kirkbi, the company behind the Lego brand.
The $2 billion comprises nearly half of the total capital investments in GameFi in 2022. Epic Games said it would use the fund to, among other things, deepen its expansion into the metaverse, specifically in virtual initiatives that can positively impact children’s well-being, such as sports.
Epic Games also released its first blockchain game, in partnership with Gala Games, a Web3 startup and game publisher. The game, Grit, is a Western-themed battle royale, like Fortnite. The launch was part of Epic Games’ ongoing efforts to welcome crypto-based games into the fold and hopefully introduce mainstream gamers to Web3 games.
This was a notable endeavor, especially since Web3 games have received a lot of flak since nonfungible tokens and other crypto products started penetrating the industry. Epic Games opening its proverbial doors to Gala Games set a precedent, with digital game stores like Apple’s App Store and Valve’s Steam having yet to warm up to the idea of Web3 games.
Sweeny, the company’s CEO, acknowledged that he was well aware of the existence of fraud and scams in the space but remained optimistic about the company’s role in the metaverse. His chief complaint, however, was related to NFTs’ use cases in the gaming space, saying in April: “They’re showing you digital goods you can’t do anything with except to say that you own it. You can cryptographically prove that you own it, but who cares?”
In September, Epic Games released its first NFT-based game on the Epic Games Store, called Blankos Block Party. It’s an open-world multiplayer game focusing on art and design, allowing players to collect rare “Blankos” ranging from $10 to $150,000. Critics pointed out the game’s flaws, with one calling it “an even more nefarious Roblox.”
Epic Games will reportedly use part of its $2 billion fund to build a kid-friendly metaverse. The investment round gives Epic Games an equity valuation of nearly $32 billion.
Epic Games plans to build its metaverse in partnership with Lego, focusing on providing kids with a safe, fun environment to explore digital experiences. The company has yet to unveil its plans, but the focus remains on children’s privacy and digital education for kids and their parents.
Meanwhile, it’s business as usual for Fortnite and the Epic Game Store, with scheduled releases and free games on the way in 2023. The company has made its roadmap public via a Trello board to keep the community updated on upcoming developments and releases.
