Epic Games completed a $1 billion funding round at a $28.7 billion valuation back in April. Now, they’re putting that cash to work.
Last week, Epic, creator of megahit “Fortnite,” purchased Sketchlab, a software platform for buying and selling 3D, AR, and VR objects. The move signals a commitment to the emerging AR and VR industries.
Terms were not disclosed. Epic will integrate Sketchlab’s technology into its game-creating platform, the Unreal Engine, and lower the commission fees it takes from sales to 12%, matching that of Epic’s game store.
Epic has focused on accumulating tools and networks for game creators in its acquisitions this year as it diversifies beyond “Fortnite.”
- Epic bought RAD Game Tools in January and 3D modeling company Capturing Reality in March.
- It bought Tonic Games Group, owner of Mediatonic and its smash hit “Fall Guys,” in another March deal.
- It acquired digital art marketplace and networking hub Artstation in April.
“Fortnite” has been the company’s main source of revenue over the last three years.
In 2018, the game accounted for 97% of Epic’s revenue. That number has dropped since — 88% in 2019, 77% in 2020 (estimated) — but the franchise remains the heart of Epic’s business.