Epic Games IPO: Revenue, Valuation, Games, Competitors & How to Invest

Epic Games is a video game software developer and publisher. The company started in 1991, originally called ‘Potomac Computer Systems’. Founder and current CEO Tim Sweeney decided to move the company from his parent’s house in Potomac to Cary, North Carolina, in 1999 and change the name to Epic Games.

The two major successes of Epic Games thus far include:

1. Creation of the ‘Unreal Engine’, technology that powers leading games and is used in industries outside gaming (like TV, film, architecture, manufacturing, and simulators).
2. Developing and operating one of the world’s largest games, Fortnite.

Epic Games doesn’t have a massive back catalogue of games as it concentrates on quality over quantity. Also, because it creates the underlying game engine technology used elsewhere, there’s not as much financial pressure to pump out games.

After moving from PC games, Epic Games’ focus switched to console games for several years. Then, it changed its approach when it believed gaming interest was shifting towards games-as-a-service model (GaaS). This move led to a partnership with Tencent, who acquired 40% of Epic Games for roughly $330 million in 2012.

Most recently, Epic Games received a $1 billion investment each from Sony and Kirkbi (Lego owners) to fuel growth and metaverse developments. 

Fortnite and app store bans

The change to focus on GaaS learning the ropes from Tencent proved to be a solid move, and Epic Games went on to create Fortnite. Released in 2017/18, it became a runaway success (in terms of finances and popularity). The model was different, using a free-to-play system with in-game purchases. The success of Fortnite attracted lots more investing interest and provided Epic Games the ability to set up its digital store. 

However, a big blow to Epic Games was the ban of Fortnite from the App Store and Google Play Store by Apple and Alphabet respectively. Epic Games argued Apple’s App Store was operating as a monopoly, taking a 30% commission of in-app purchases with no alternative option. Epic Games tried to circumvent this and as a result, got the boot from the store.

Below is a breakdown of some key information, including Epic Games’s revenue, gross income, Fortnite stats, games lineup, and top competitors.

Here’s what the past and present lineup of games on offer from Epic Games looks like:

• Fortnite
• Alan Wake
• Rumbleverse
• Rocket League
• Battle Breakers
• Infinity Blade
• Gears of War
• Unreal Tournament

Below are some examples of gaming competitors to Epic Games:

• Activision Blizzard
• EA (Electronic Arts)
• Riot Games
• Ubisoft
• Capcom
• Rockstar Games
• Zynga

There’s no exact date set right now. Many investors have been hoping for news about a possible Epic Games IPO (initial public offering), but we don’t have a confirmed plan from CEO Tim Sweeney (or any other company representatives). 

So far, Epic Games has had no problem fundraising and attractive investment interest from organisations with deep pockets. It does not need immediate capital to allow further growth, which is why it may be holding off on a stock market flotation.

After the Epic Games IPO date, you can freely buy the newly listed stock. Interactive Brokers and eToro are two top-rated brokers where you can access Epic Games shares and buy the stock with low fees after the IPO. Take a look at both these brokerage options below:

1# Interactive Brokers

Founded in 1978, the IBKR platform lets you access over 150 market destinations in 33 countries and trade any asset you may be looking for: Stocks, Bonds, ETFs, Forex, Funds, Commodities, Options, Futures, CFDs, Cryptos Futures, and even tiny small companies (a.k.a micro caps).

If you want to buy Epic Games stock after the IPO, here’s how you can buy shares using Interactive Brokers:

1. Open a trading account with Interactive Brokers.
2. Deposit funds into your account.
3. Once it’s available, search for the Epic Games stock, there is no confirmed ticker symbol right now.
4. Place the type of order you wish to use (e.g. market, limit, stop etc.).
5. Once you’ve bought your desired number of Epic Games shares, continue to monitor performance.

If you’d like to learn more about the IBKR platform, check out our full-length Interactive Brokers review.

2# eToro

Founded in 2006 in Israel, eToro now has over 30 million customers worldwide. The platform is widely known for its social and copy trading features. It allows users to trade stocks, forex, commodities, cryptocurrencies, CFDs, and ETFs.

If you’re planning to buy Epic Games stock after the IPO, here’s how you can buy shares using eToro:

1. Open an account with eToro.
2. Head to the ‘Markets’ page, and select ‘Stocks’.
3. Search for the Epic Games stock and select ‘Trade’.
4. Next, hit ‘BUY’.
5. Choose how much you want to invest in Epic Games or the number of shares you want to buy.
6. Select your leverage (or ensure that leverage is set to X1).
7. Decide on a take-profit parameter if you want to automate a future sale of your Epic Games stock.
8. Finally, hit ‘Open Trade’.

If you’d like to learn more about eToro, check out our in-depth eToro review.

Bottom line on investing in the Epic Games IPO

Investing in Epic Games will be an exciting prospect for investors and video game enthusiasts around the world. Right now, you can’t invest directly in Epic Games, but there can be indirect ways, like using certain eSports ETFs (exchange-traded funds). 

Epic Games has attracted lots of money through institutional investments, and the company already has partnerships and ties to giant firms like Tencent, Sony, Disney, and Netflix. The only concern with Epic Games is that financial performance is heavily linked to the success of Fortnite.

Yet, throughout Epic Games’ history, the company has largely concentrated on one product or franchise at a time. The video game firm has also proved it knows when to move on or adjust its approach. So, if money from Fortnite was to dry up, I’m sure Epic Games would have other projects in the works, ready to take over.

Let us know in the comments below if you plan on investing in the Epic Games IPO!