Epic Games, founded by Tim Sweeney as Potomac Computer Systems in 1991 and later renamed Epic MegaGames before settling on Epic Games, is an American video game and software developer and publisher. Based in Cary, North Carolina, the company's origins trace back to Sweeney's parents' house in Potomac, Maryland, where it released its first game, ZZT. Mark Rein joined the company in 1992 and serves as its vice president. Epic Games is a prominent player in the gaming industry.
In January 1991, Tim Sweeney released his game ZZT to the public under the Potomac Computer Systems name. The game's success was partly due to its easy modifiability using the ZZT-oop programming language.
In 1991, Tim Sweeney founded Potomac Computer Systems as a computer consulting business while studying at the University of Maryland. He later scrapped the business idea.
In early 1992, Sweeney renamed Potomac Computer Systems to Epic MegaGames. Mark Rein joined as a business partner, handling sales and marketing. The company grew to 20 employees, including Cliff Bleszinski.
In early 1992, following the success of its first game, ZZT, Potomac Computer Systems was renamed Epic MegaGames, Inc. Mark Rein joined the company as vice president around the same time.
In 1996, Epic MegaGames produced a shareware isometric shooter called Fire Fight, developed by Polish studio Chaos Works, and published by Electronic Arts.
By 1997, Epic MegaGames had 50 people working for them worldwide.
In 1998, Epic MegaGames released Unreal, a 3D first-person shooter co-developed with Digital Extremes, and began licensing the Unreal Engine to other game developers.
In February 1999, Epic MegaGames announced their move to Cary, North Carolina, and rebranded as Epic Games. The "Mega" part of the name was dropped because they no longer wanted to pretend to be a big company.
In 1999, Epic MegaGames relocated its headquarters to Cary, North Carolina, and changed its name to Epic Games.
In 2004, Epic Games launched the Make Something Unreal competition to reward video game developers who create mods using the Unreal game engine. Tripwire Interactive won US$80,000 in cash and computer hardware prizes over the course of the first contest in 2004.
On July 19, 2007, Silicon Knights sued Epic Games, alleging failure to provide a working Unreal Engine 3, which led to considerable losses for the game developer. The suit claimed Epic was sabotaging Unreal Engine 3 licensees and withholding vital improvements.
In August 2007, Epic Games counter-sued Silicon Knights, alleging that the studio knew certain Unreal Engine 3 features were still in development when signing the licensing agreement. Epic also claimed unauthorized use of its licensed technology and infringement of intellectual property rights.
In 2008, Epic Games released Gears of War 2, selling over three million copies within the first month of its release.
As of May 2009, ZZT had sold several thousand copies. Sweeney's father, Paul Sweeney, was still fulfilling orders from the former Potomac Computer Systems address at the time.
On December 9, 2010, Epic Games released Infinity Blade, an iOS game.
In 2011, Epic's subsidiary Titan Studios was dissolved. At the 2011 Spike Video Game Awards, Epic Games announced their new game Fortnite.
In March 2012, Epic Games China became independent from Epic as Ying Pei Games, developing Mercenary Ops at the time, while Epic still retained a minority stake.
On May 30, 2012, Epic Games won its countersuit against Silicon Knights for $4.45 million due to copyright infringement, misappropriation of trade secrets, and breach of contract. The presiding judge stated that Silicon Knights had deliberately copied Epic Games' code.
In June 2012, Epic announced that it was opening up a new studio, Epic Baltimore, made up of members of 38 Studios' Big Huge Games.
In June 2012, Tencent acquired approximately 48.4% of Epic's then-issued share capital, equating to 40% of total Epic, for $330 million. This agreement aimed to help Epic gain more experience with the games-as-a-service model.
In August 2012, Epic Baltimore was renamed to Impossible Studios.
On November 7, 2012, Silicon Knights was directed by the court to destroy all game code derived from Unreal Engine 3, restricted information from Epic's website, and to allow Epic Games access to their servers to ensure removal. They were also instructed to recall and destroy unsold retail copies of games built with Unreal Engine 3 code, including Too Human and X-Men Destiny.
In 2012, Tencent acquired a 48.4% outstanding stake in Epic Games (equating to 40% of total Epic) as part of an agreement aimed at moving Epic towards a games as a service model.
On January 29, 2013, Epic Citadel was released for Android.
In February 2013, Impossible Studios closed its doors.
In November 2013, the final copy of ZZT was shipped by Paul Sweeney.
On May 16, 2014, Silicon Knights filed for bankruptcy, with Collins Barrow Toronto Limited appointed as trustee.
In 2014, Epic started the free-to-play and community-developed Unreal Tournament.
In 2014, Unreal Engine was named the "most successful videogame engine" by Guinness World Records.
In March 2015, Epic Games re-licensed the Unreal Engine 4 engine to be free for all users to develop with, with Epic taking 5% royalties on games developed with the engine.
In June 2015, Epic agreed to allow Epic Games Poland's departure from the company and sold its shares in the studio; the studio reverted to their former name, People Can Fly.
In 2015, Epic released a remastered version of Shadow Complex for newer consoles and computers, and their first foray into virtual reality with the release of Robo Recall for the Oculus Rift.
In 2016, Epic launched the free-to-play multiplayer online battle arena game Paragon for Microsoft Windows and PlayStation 4.
On April 7, 2017, People Can Fly, who retained the Bulletstorm IP, launched a remastered version called Bulletstorm: Full Clip Edition, published by Gearbox Software.
In July 2017, Fortnite was launched through a paid early access.
In September 2017, Epic developed and released Fortnite Battle Royale as a free-to-play title across computer, console, and mobile platforms, following the popularity of PlayerUnknown's Battlegrounds.
Following the release of the popular Fortnite Battle Royale in 2017, Epic Games gained additional investments that enabled it to expand its Unreal Engine offerings, establish esports events around Fortnite, and launch the Epic Games Store.
By May 2018, Fortnite Battle Royale had amassed over 125 million players.
By July 2018, Fortnite Battle Royale was estimated to have earned over $1 billion through microtransactions. Epic Games' valuation was estimated at $4.5 billion due to the success of the game.
On December 4, 2018, Epic Games announced the Epic Games Store, an open digital storefront for games on Windows, launching a few days later during The Game Awards 2018. It offered developers a more favorable revenue-sharing agreement compared to Valve's Steam.
Since 2019, Epic Games has provided support for filmmakers using the Unreal Engine to create virtual sets for productions like The Mandalorian, and has been backing animated feature film productions using Unreal, starting with Gilgamesh.
In late March 2020, accusations began circulating on social media that the Epic Games social networking app Houseparty led to other services such as Netflix and Spotify being hacked. Epic and Life on Air claimed it was a smear campaign and offered a $1 million bounty for substantiating the claim.
In May 2020, Epic Online Services, a free SDK based on Epic's Fortnite code, was released for all developers. It enables cross-platform play features like matchmaking, friends lists, leaderboards, and achievements on Windows, macOS, PlayStation 4, Xbox One, Nintendo Switch, iOS, and Android systems.
On August 13, 2020, Epic Games updated Fortnite to reduce the price of "V-Bucks" by 20% for direct purchases from Epic. Apple and Google removed Fortnite from their storefronts due to the bypass of their payment systems. Epic immediately filed antitrust lawsuits against Apple and Google.
On August 28, 2020, Apple threatened to terminate Epic's developer accounts, leading Epic to file a motion for a preliminary injunction to force Apple to reinstate Fortnite and prevent the developer account termination. The latter action would prevent Unreal Engine updates for iOS and macOS.
In September 2020, Epic Games acquired SuperAwesome, a company specializing in creating children-safe game services, to integrate these elements into Epic's portfolio and offer them to other developers, especially those building metaverse games.
In September 2020, Epic Games, along with thirteen other companies, launched the Coalition for App Fairness, aiming for better conditions for app inclusion in app stores.
In November 2020, Epic Games acquired Hyprsense, a company specializing in digital facial animation.
In 2020, Fall Guys, developed by Mediatonic, experienced significant success.
In January 2021, Epic Games acquired RAD Game Tools, a company that creates middleware solutions for video game development, with plans to integrate RAD's tools into the Unreal Engine. RAD's tools will continue to be available outside of Unreal.
In March 2021, Epic Games announced the acquisition of Tonic Games Group, including Mediatonic and Fortitude Games. Mediatonic's "Fall Guys" would remain on Steam, and Epic would help bring it to other platforms. Also in March 2021, Epic acquired Capturing Reality, the developers of RealityCapture, a photogrammetry suite for creating 3D models, planning to integrate it into the Unreal Engine.
In April 2021, Epic Games acquired ArtStation, a marketplace for professional artists. ArtStation members gained access to Epic's tools like the Unreal Engine, and the ArtStation marketplace reduced its revenue cut from 30% to 12%.
In June 2021, Epic Online Services added support for anti-cheat and voice chat functionalities to its free SDK.
In July 2021, Epic Games acquired Sketchfab, a marketplace for 3D models. The acquisition resulted in Sketchfab lowering its revenue cut on purchases to 12% and making its Sketchfab Plus membership free.
On September 10, 2021, U.S. District Court Judge Yvonne Gonzalez Rogers ruled in favor of Apple on most counts in Epic Games v. Apple, including Apple's 30% revenue cut and prohibition against third-party marketplaces. However, she ruled against Apple on anti-steering provisions and issued a permanent injunction blocking Apple from preventing developers from linking app users to other storefronts.
In September 2021, Apple was victorious in a bench trial against Epic Games. The ruling, which upheld Apple's actions, was later upheld through appeals.
In November 2021, Epic Games acquired Harmonix, a music game developer. Harmonix would continue to support games such as Rock Band 4 and Fuser while contributing to Fortnite's musical experiences.
In March 2022, Epic Games acquired Bandcamp, an indie music platform, which was expected to operate independently while utilizing Epic's backend services.
As of April 2022, Epic Games has a US$32 billion equity valuation.
In September 2022, Epic and Autodesk partnered to make Twinmotion available to subscribers of Revit.
In December 2022, Epic Games was fined $520 million by the Federal Trade Commission (FTC) related to Fortnite. The accusations included violating COPPA related to children's privacy and misleading users into making unwanted purchases.
In April 2023, Epic Games acquired Brazilian developer Aquiris Game Studio, known for Horizon Chase, and renamed it Epic Games Brasil, planning to integrate it into Fortnite.
In September 2023, Epic Games sold Bandcamp, the indie music platform acquired in March 2022, to music licensing company Songtradr.
In December 2023, Fortnite's musical experiences were expanded with the addition of Fortnite Festival mode, a note-matching gameplay feature similar to Rock Band.
In December 2023, a jury found Google maintained a monopoly on the Android marketplace by managing the Play Store in a monopolistic way and leveraging deals with partners. This verdict came after Epic Games sued Google, and the jury found in favor of Epic on all claims made.
In December 2023, a jury trial found that Google's actions related to its app store were monopolistic in the case against Epic Games.
In January 2024, a second phase of the trial between Epic Games and Google is scheduled to occur, and will determine remedies after the jury found Google guilty of monopolistic practices in December 2023.
In December 2024, Epic Games settled with the FTC, agreeing to pay $245 million due to the use of dark patterns that drove users to buy V-bucks. Additionally, $72 million was issued as refunds to over 600,000 users who filed claims.
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