Epic Games Eyes Entertainment Division

Epic Games has sought to diversify beyond breakout hit “Fortnite,” and now it’s looking to expand beyond video games.

The game studio and store is considering creating an entertainment division that would focus on scripted shows and movies, including a “Fortnite” film.

The company already has core leadership in place for such a venture, including Jason McGatlin, formerly of Lucasfilm, who was an executive producer of the five most recent “Star Wars” movies and “The Mandalorian” TV series. Epic has also hired at least two other Lucasfilm executives.

Documents made public in Epic’s court case against Apple (which both sides are appealing) revealed the extent to which Epic’s revenue is dependent on “Fortnite.”

• “Fortnite” accounted for 97% of Epic’s $5.6 billion in 2018 revenue.
• The game brought in 88% of Epic’s $4.2 billion in revenue the following year. 
• The company’s revenue was $3.85 billion for 2020, with $1.54 billion in profit. Previous projections found that “Fortnite” would be 77% of the company’s earnings.

The company’s game store is of growing importance to Epic, bringing in a projected 11% of its revenue in 2020. Epic takes a 12% commission from developers, well under Apple’s and Google’s 30% for most developers. 

Epic’s famous Unreal Engine technology, built for game making, is already used by Hollywood studios.