Epic Games, founded by Tim Sweeney in 1991 as Potomac Computer Systems, is an American video game and software developer and publisher headquartered in Cary, North Carolina. Initially located in Potomac, Maryland, and later known as Epic MegaGames, the company gained recognition with its first commercial game, ZZT. Mark Rein joined in 1992 and became vice president. The company relocated to Cary in 1999 and rebranded as Epic Games.
In January 1991, after finishing his game ZZT, Tim Sweeney reused the Potomac Computer Systems name to release the game to the public.
In 1991, Tim Sweeney founded Potomac Computer Systems while studying mechanical engineering at the University of Maryland. Initially, the company was conceived as a computer consulting business, but Sweeney later abandoned the idea.
In 1992, Tim Sweeney renamed his company to Epic MegaGames to compete with larger studios. He partnered with Mark Rein for sales and marketing. The company grew to 20 employees, including Cliff Bleszinski.
In early 1992, Potomac Computer Systems was renamed Epic MegaGames, Inc. Mark Rein joined the company as vice president.
In 1996, Epic MegaGames produced a shareware isometric shooter called Fire Fight, which was developed by Chaos Works and published by Electronic Arts.
By 1997, Epic MegaGames had 50 employees working for them worldwide.
In 1998, Epic MegaGames released Unreal, a 3D first-person shooter co-developed with Digital Extremes. The company also began to license the Unreal Engine to other game developers.
In February 1999, Epic MegaGames announced its move to Cary, North Carolina, and its change to Epic Games. The 'Mega' part of the name was dropped to reflect the company's growth and shift away from pretending to be a large company.
In 1999, the company moved its headquarters to Cary, North Carolina, and changed its name to Epic Games.
In 2004, Epic Games launched the Make Something Unreal competition, rewarding video game developers who created mods using the Unreal game engine. Tripwire Interactive won US$80,000 in cash and computer hardware prizes in the first contest.
On July 19, 2007, Silicon Knights sued Epic Games, alleging Epic failed to provide a working game engine and sabotaged Unreal Engine 3 licensees, causing significant losses to the Ontario-based game developer.
In August 2007, Epic Games counter-sued Silicon Knights, claiming they knew Unreal Engine 3 features were in development when they signed the licensing agreement and that Silicon Knights made unauthorized use of Epic's technology by incorporating Unreal Engine 3 code into their own engine.
In 2008, Epic Games released Gears of War 2, which sold over three million copies within the first month of its release.
As of May 2009, ZZT had sold several thousand copies, with orders still being fulfilled by Sweeney's father, Paul Sweeney, from the former Potomac Computer Systems address.
On December 9, 2010, Epic Games released Infinity Blade, an iOS game.
In 2011, Epic Games released Gears of War 3, the third game in the Gears of War series.
In 2011, Epic's subsidiary Titan Studios was dissolved. At the 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. Epic retained a minority stake.
On May 30, 2012, Epic Games defeated Silicon Knights' lawsuit and won its counter-suit for $4.45 million due to copyright infringement, misappropriation of trade secrets, and breach of contract.
In June 2012, Epic announced the opening of a new studio, Epic Baltimore, which consisted of members from 38 Studios' Big Huge Games.
In June 2012, Tencent acquired approximately 48.4% of Epic's issued share capital (40% of total Epic) for $330 million, in exchange for helping Epic gain more experience in the games-as-a-service model.
In August 2012, Epic Baltimore was renamed to Impossible Studios.
In August 2012, Epic fully acquired People Can Fly.
On November 7, 2012, Silicon Knights was directed by the court to destroy all game code derived from Unreal Engine 3, all information from licensee-restricted areas of Epic's Unreal Engine documentation website, and to permit Epic Games access to the company's servers and other devices to ensure these items have been removed. In addition, the studio was instructed to recall and destroy all unsold retail copies of games built with Unreal Engine 3 code, including Too Human, X-Men Destiny, The Sandman, The Box/Ritualyst, and Siren in the Maelstrom.
In 2012, Tencent acquired a 48.4% outstanding stake (40% of total Epic) in Epic Games, aiming to move Epic towards a games-as-a-service model.
On January 29, 2013, Epic Citadel was released for Android, demonstrating the capabilities of Unreal Engine 3 on the platform.
In February 2013, Impossible Studios closed its doors.
In November 2013, the final copy of ZZT was shipped by Paul Sweeney, marking the end of its distribution.
On May 16, 2014, Silicon Knights filed for bankruptcy, marking the end of the company following the legal battles with Epic Games.
In 2014, Epic announced the free-to-play and community-developed Unreal Tournament.
In 2014, the Unreal Engine was recognized by Guinness World Records as the "most successful videogame engine".
In March 2015, Epic Games re-licensed the Unreal Engine 4 to be free for all users to develop with, 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, reverting 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 release of the popular Fortnite Battle Royale in 2017, Epic Games gained additional investments, enabling it to expand its Unreal Engine offerings, establish esports events around Fortnite, and launch the Epic Games Store.
Since as early as 2017, Tim Sweeney questioned the need for digital storefronts like Valve's Steam, Apple's iOS App Store, and Google Play, to take a 30% revenue sharing cut, arguing that an 8% cut should be sufficient. When Epic brought Fortnite Battle Royale to mobile devices, the company initially offered a sideloaded package for Android systems to bypass the Google Play store, but eventually also made it a store app.
In January 2018, Epic acquired Cloudgine, a developer of cloud-based gaming software.
By May 2018, Fortnite Battle Royale had amassed over 125 million players.
By July 2018, Fortnite Battle Royale had earned over $1 billion through microtransactions, leading to an estimated valuation of $4.5 billion for Epic Games.
In July 2018, Epic reduced the revenue cut it took for assets sold on the Unreal Engine Marketplace from 30% to 12%.
In October 2018, Epic announced it had acquired $1.25 billion in investment from seven firms. With the investment, Epic Games was estimated to have a nearly $15 billion valuation in October 2018.
In October 2018, Epic announced the acquisition of Kamu, a firm that offered anti-cheat software called Easy Anti-Cheat.
On December 4, 2018, Epic Games announced its own Epic Games Store, an open digital storefront for games on Windows, launching it a few days later. The Epic Games Store takes a 12% revenue cut, lower than Steam's 30%.
In January 2019, Epic acquired 3Lateral and Agog Labs. 3Lateral is known for its "digital human" creations. Agog had developed SkookumScript, a platform for scripting events in video games; on the announcement of this acquisition, Agog stated they will stop the development of SkookumScript to work more on Unreal Engine scripting support.
In January 2019, Epic partnered with Improbable to launch a $25 million fund. This fund aimed to help developers affected by changes to the acceptable uses of the Unity game engine, providing them with solutions that are more open and have fewer service compatibilities.
In February 2019, Epic launched a $100 million prize pool for Fortnite-related esports activities, planned to run from 2019 onward. This investment highlighted Epic's commitment to expanding its presence in the esports arena.
As of March 2019, Fortnite had drawn nearly 250 million players.
In May 2019, Epic Games hired Nate Nanzer from Blizzard Entertainment, who was the commissioner of the Overwatch League. This move was aimed at expanding Epic's esports initiatives.
In May 2019, Epic acquired Psyonix, the developer of Rocket League.
In May 2019, Epic acquired the Twinmotion visualization tool used in architectural design from Abvent, with plans to expand and incorporate it into their Unreal Engine offerings.
In June 2019, Epic Games was given the British Academy of Film and Television Arts Special Award. This award recognized its past and continuing developments for the Unreal Engine software.
In June 2019, Epic acquired Life on Air, the developers behind Houseparty, a social networking service. The monetary terms of the acquisition were not disclosed.
In July 2019, The Blender Foundation received $1.2 million from Epic's MegaGrants funding. This funding helped them improve and professionalize their Blender tools for 3D art creation.
In November 2019, Epic acquired Quixel, the world's largest photogrammetry asset library which makes 3D models of objects based on real-world high-definition photography. Epic plans to open Quixel's existing library of models to users of Unreal Engine.
Since 2019, Epic has supported filmmakers using the Unreal Engine to create virtual sets for productions like The Mandalorian, and backed major animated feature film production using Unreal, starting with Gilgamesh with studios Hook Up, DuermeVela and FilmSharks.
On January 1, 2020, Epic waived all Unreal license fees retroactively for games up through the first $1 million in revenue, regardless of how they were published.
In March 2020, Epic announced the establishment of Epic Games Publishing, a new multi-platform publishing label. Alongside this announcement, the label revealed deals with developers Remedy Entertainment, Playdead, and GenDesign.
In March 2020, the company acquired Cubic Motion, a studio that provides highly detailed digital facial animations for both films and video games.
In late March 2020, accusations arose on social media claiming that the Epic Games social networking app Houseparty led to other services such as Netflix and Spotify being hacked.
On May 13, 2020, Unreal Engine 5 was announced, with plans for an early 2022 release. Epic also released its Epic Online Services, a free SDK toolset for online matchmaking and cross-platform play support.
Following the demonstration of Unreal Engine 5 in May 2020, Sony began investment talks with Epic. These discussions ultimately led to Sony investing in the company.
In May 2020, Epic Online Services, a free SDK based on Fortnite code allowing developers to implement cross-platform play features, was released for all. It supports various platforms including Windows, macOS, PlayStation 4, Xbox One, Nintendo Switch, iOS, and Android.
In June 2020, Bloomberg reported that Epic was nearing a $17 billion valuation after completing a new $750 million investing round. The company also partnered with Christopher Nolan and Warner Bros. to acquire distribution rights for Inception, Batman Begins and The Prestige as part of "Movie Nite" on Fortnite's "Party Royale" island.
On August 13, 2020, Epic Games updated Fortnite across all platforms, including iOS and Android, to reduce the price of V-Bucks by 20% if purchased directly from Epic. As Apple and Google removed Fortnite from their app stores due to bypassing their payment systems, Epic filed separate lawsuits against both companies for antitrust and anticompetitive behavior. Epic sought injunctive relief to allow fair competition.
On August 28, 2020, Apple threatened to terminate Epic's developer accounts, prompting Epic to file a motion for a preliminary injunction to force Apple to return Fortnite to the App Store and prevent the termination, arguing it would harm Unreal Engine developers.
In September 2020, Epic Games acquired SuperAwesome, a company specializing in developing services for child-safe games. This acquisition aimed to enhance Epic's portfolio with these elements and offer them to other developers, aligning with Epic's metaverse game vision. Incorporating SuperAwesome's technology allows Epic to create safer and more engaging experiences for younger players.
In September 2020, Epic Games and thirteen other companies launched the Coalition for App Fairness, aiming for better conditions for app inclusion in app stores, advocating for fairer app store policies.
In November 2020, Epic Games acquired Hyprsense, a digital facial animation firm. This acquisition likely aimed to integrate Hyprsense's technology into Epic's existing products, enhancing facial animation capabilities.
During 2020, Mediatonic's Fall Guys achieved major success. In March 2021, Epic Games would acquire the Tonic Games Group, including Mediatonic, with the intent to bring Fall Guys to more platforms.
In January 2021, Epic Games acquired RAD Game Tools, a company known for its middleware solutions for video game development. Epic planned to integrate RAD's tools into the Unreal Engine, while also keeping them available for use outside of Unreal, benefiting game developers generally.
In January 2021, Epic purchased Cary Towne Center in Cary, North Carolina, to be their new headquarters and campus, with the conversion to be complete by 2024.
In February 2021, Epic unveiled its MetaHuman Creator project. The MetaHuman Creator is a browser-based application to allow game developers to create realistic human characters within a short amount of time.
In March 2021, Epic Games acquired the Tonic Games Group, including Mediatonic and Fortitude Games, with the intent to bring Mediatonic's popular game Fall Guys to more platforms. Also in March 2021, Epic acquired Capturing Reality, the developers of RealityCapture, which can create 3D models from photos, planning to integrate it into the Unreal Engine.
In March 2021, Epic announced a partnership with Cesium to bring its 3D geospatial data as a free add-on into the Unreal Engine.
In April 2021, Epic Games acquired ArtStation, a marketplace for professional artists. As part of the acquisition, ArtStation members would gain access to Epic's tools like the Unreal Engine, and the ArtStation marketplace reduced its take on purchases from 30% to 12%.
In April 2021, Epic completed another $1 billion round of funding to support the company's "long-term vision for the metaverse", putting the company's valuation at $28.7 billion. The round of funding included another $200 million strategic investment from Sony.
In June 2021, Epic Online Services added support for anti-cheat and voice chat functionalities, enhancing its capabilities for game developers.
In July 2021, Epic Games acquired Sketchfab, a marketplace for 3D models. Similar to the ArtStation acquisition, Sketchfab reduced its revenue cut on purchases to 12% and made its Sketchfab Plus membership free.
On September 10, 2021, U.S. District Court Judge Yvonne Gonzalez Rogers ruled in favor of Apple on nine of ten counts in Epic Games v. Apple, but ruled against Apple on anti-steering provisions and issued an injunction blocking Apple from preventing developers from linking app users to other storefronts from within apps.
In September 2021, Apple was ultimately victorious in a bench trial against Epic related to antitrust behavior, which was upheld through appeals.
In October 2021, Epic expanded their publishing options with Spry Fox and Eyes Out.
In October 2021, Epic later shuttered Houseparty's app, though the team behind it was continuing to develop social apps for Epic's platforms.
In October 2021, The Information reported that Epic Games was launching a new scripted entertainment division. There were initial plans for a Fortnite film.
In November 2021, Epic Games acquired Harmonix, a music game developer, for undisclosed terms. Harmonix continued to support existing games such as Rock Band 4 and Fuser while building out musical experiences within Fortnite.
In February 2022, Epic Games announced that at least half a billion accounts have been created on its platform.
In March 2022, Epic Games acquired Bandcamp, an indie music platform. Bandcamp was expected to operate independently under Epic, benefiting from Epic's backend services.
As of April 2022, Epic Games has a US$32 billion equity valuation.
In April 2022, Epic received another $1 billion each from Sony and from Kirkbi, the parent company of The Lego Group. Epic and Lego also announced their partnership to build a child-friendly space in the metaverse that same month.
In April 2022, Epic released the initial beta version of RealityScan, a mobile app that uses the tools from Capturing Reality and Quixel. RealityScan allows users to create 3D models that can be imported into Sketchfab using photos taken by the user.
In September 2022, Epic and Autodesk partnered, making Twinmotion available to Revit subscribers, enhancing their architectural visualization capabilities.
In December 2022, Epic Games was fined a combined $520 million by the Federal Trade Commission for violating COPPA related to children's privacy and misleading users into making unwanted purchases within Fortnite.
In April 2023, Epic Games acquired Aquiris Game Studio, a Brazilian developer known for Horizon Chase. Aquiris was renamed Epic Games Brasil and intended to contribute to Fortnite.
In September 2023, Epic Games sold Bandcamp, which it had acquired in March 2022, to the music licensing company Songtradr.
In September 2023, Epic announced that it was laying off 870 employees, along with divesting in Bandcamp to Songtradr and spinning off SuperAwesome into its own company. Sweeney said this move was needed to rein in spending.
In December 2023, Harmonix, owned by Epic Games, added a Fortnite Festival mode to Fortnite, mimicking the gameplay of Rock Band, as part of Epic's metaverse plans.
In December 2023, Psyonix developed an arcade-style car racing game inside of Fortnite, named Rocket Racing, which was added to the game.
In December 2023, a jury found Google maintained a monopoly on the Android marketplace by how it managed the Play Store, and used its leverage as a big tech firm to make deals with partners.
In January 2024, a second phase of the trial between Epic and Google is scheduled to occur to determine remedies, after the jury found Google had monopolized the Android marketplace in December 2023.
On February 7, 2024, Epic Games received a $1.5 billion investment from The Walt Disney Company. Disney plans to co-develop new games and an "entertainment universe" encompassing its properties with Epic.
In July 2024, the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) initiated a labor strike against a number of video publishers, including Epic Games, over concerns about lack of A.I. protections related to video game actors.
Epic launched Fab, a unified marketplace for Unreal Engine Marketplace, Sketchfab, ArtStation Marketplace, and Quixel assets, on October 22, 2024.
On December 6, 2024, after no further actions, the Town of Cary revoked Epic's zoning application for the Cary Towne Center, declaring it "inactive".
In December 2024, Epic settled with the FTC, agreeing to pay $245 million related to the use of dark patterns it used to drive users to buy V-bucks in Fortnite, with $72 million being issued as refunds to more than 600,000 users.
In January 2025, Epic opened a version of the Epic Games Store for Android devices worldwide and for iOS devices in Europe as a result of legal victories, one based on its suit against Google, and the second from the European Union's enforcement of remedies towards Apple under the Digital Markets Act.
In April 2025, Judge Rogers ruled that Apple's changes to comply with the original injunction were insufficient, blocking Apple from taking fees from third-party stores or restricting how they are shown in apps, which subsequently led Epic to bring the Epic Games Store back to iOS within a week.
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