Epic Games excels in two major areas: Unreal Engine and Fortnite.
Unreal Engine (“UE”): As the most-used AAA 3D game engine, Unreal Engine powers over half of the announced next-gen games, establishing itself as a critical tool for game developers and 3D world creators (used in over 600 major motion pictures and TV shows). Over the past few years, Epic has been diligently building out the UE ecosystem and is now just beginning to monetize it, marking a new beginning for this powerful platform.
Fortnite: Simultaneously, Epic runs Fortnite, the rapidly growing, most-played video game with user-generated content accounting for 40% of playtime.
Record-breaking Q4 with LEGO Fortnite and other launches: In 2023, Fortnite experienced tremendous momentum, reaching 100 million active users in November. December saw another peak with the launch of LEGO Fortnite, achieving 6.6 million concurrent players. LEGO Fortnite is just getting started; having proven its potential in 2023, it will bring tons more gameplay and LEGO building sets into Fortnite.
Expanding ecosystem with diverse offerings: Epic Games is evolving Fortnite into a platform with multiple game modes, from user-generated content (Creatives) to LEGO, Racing, and Rock Band (Festival). This strategy has successfully re-engaged former players and attracted new audiences.
Disney collaboration (Feb 2024): Disney's $1.5bn equity investment in Epic Games marks Disney’s biggest entry ever into the world of games. This project will integrate Disney's iconic characters and stories, enhancing player experiences and expanding the reach of both brands (The Walt Disney Company).
Focusing on core ecosystem and FCF: In 2023, Epic Games made a 16% reduction in force, and divested non-core businesses to focus on FCF. With a solid foundation established through initiatives from Unreal Engine to LEGO Fortnite and other innovative expansions, Epic Games is poised to capitalize on future growth opportunities and continue building its ecosystem and market presence.