REPORT: Fortnite Developers To Reach Staggering Valuation

The current world pandemic has caused major losses across several industries. Many are still on the verge of recovering. On the other hand, it appears that one has made the best use of the situation. Fortnite developer, Epic Games, has reportedly been valued at a whopping $17 Billion. 

Fortnite – The fundamental key?

Epic Games is near to closing a new funding round of $750 Million that would bring about this valuation. New investors T Rowe Price Group and Baillie Gifford along with KKR & Co. will be investing towards the said round. 

Fortnite is not the sole reason for this valuation. The company is the creator of the ‘Unreal Engine’ as well. The game engine from Epic Games has been the key tool for many of the fan-favorite titles.

Epic Games was founded by Tim Sweeny back in 1991. As of today, the company owns cloud-based software Cloudgine and Video game developers Chair Entertainment and Psyonix. With the launch of Fortnite in 2017, they established eSports events around the game and launched the Epic Games store. Game analyst Daniel Ahmad also spread some lights on how the valuation stands.

In 2012, Tencent acquired about a 40 percent stake in the company which amounted to close to $330 Million. The company is looking forward to expanding the business. Above all, with further additions and investors. 

Epic Games going forward

With the current situation, many people have taken up video games as a rescue from boredom. Given the chance, the company proceeded with smart business tactics. Fortnite hosted a concert by Rapper Travis Scott and featured the trailer for Christopher Nolan’s upcoming film ‘Tenet’. Millions of users tuned in to watch both the events and it has only benefited the company.

Now with the next-gen consoles on their way, it’s time for Epic Games to step up with their new Unreal Engine 5. The engine will support existing platforms along with the newly launched Xbox Series X and PlayStation 5.

The Unreal Engine 5 comes with Nanite, that will allow for high-detailed photographic material to be imported into the game by virtual technology. Fortnite is expected to use the same technology by 2021.