Sony and Lego Invest $2 Billion in Epic Games' Metaverse

Fortnite maker Epic Games is steadily putting together the building blocks of its significant metaverse endeavor, which will focus on reaching younger kids. Sony Group and Kirkbi, which owns 75% of Lego Group, have invested $1 billion each in the gaming studio to advance their efforts to shape metaverse content and advertising. Last week, Lego and Epic Games revealed a plan to build a place for kids to play in the metaverse. “As a creative entertainment company, we are thrilled to invest in Epic to deepen our relationship in the metaverse field, a space where creators and users share their time,” Kenichiro Yoshida, chairman, president and CEO of Sony Group Corporation, said in a statement. Nike Asked Kids to Build a Metaverse World Inspired by Its Classic Air Max Sneaker “We are also confident that Epic’s expertise, including their powerful game engine, combined with Sony’s technologies will accelerate our various efforts such as the development of new digital fan experiences in sports and our virtual production initiatives.” In 2020, Epic Games acquired SuperAwesome, which created technology designed to deliver safe digital engagement with children under 16. With this new $2 billion investment, Epic said it's now valued at $31.5 billion. “As we reimagine the future of entertainment and play, we need partners who share our vision. We have found this in our partnership with Sony and Kirkbi,” said Tim Sweeney, CEO and founder of Epic Games. “This investment will accelerate our work to build the metaverse and create spaces where players can have fun with friends, brands can build creative and immersive experiences, and creators can build a community and thrive.” Prior to this, Sony made a $250 million investment in Epic Games nearly two years ago. It followed that up with a $200 million investment in April 2021 that spearheaded a $1 billion funding round for Epic. Consider Roblox It's worth considering the success of Roblox to get some context around the importance of this investment. On any given day, Roblox reached 45.5 million active users in the 2021 fiscal year. It's all about building a metaverse media business. That's why Lego likely felt the need to get involved—despite seemingly no one knowing what the metaverse actually is. There are clear marketing opportunities. Roblox has established brand partnerships with the likes of Vans, Gucci and Netflix to create specific activations within the game. At 90 years old, the Lego brand is still going strong. The company's annual revenue rose 27% in 2021, reaching $8 billion. Now, it's looking to take that brand equity digital with the metaverse play. Lego dipped its toe in the augmented reality and VR world with its Hidden Side sets, but a project like this will allow the brand to expand its reach. Meanwhile, Epic Games will add another way to compete in the youth market with Roblox, while Sony beefs up its investment in one of the top gaming studios. The company recently bought game developer Bungie for $3.6 billion in January. “Epic Games is known for building playful and creative experiences and empowering creators large and small,” said Søren Thorup Sørensen, CEO of Kirkbi, in a statement. “A proportion of our investments is focused on trends we believe will impact the future world that we and our children will live in." Wendy’s Brings Burgers to the Metaverse With New Restaurant in Meta’s Horizon Worlds

Metaverse

Sony and Lego Invest $2 Billion in Epic Games to Shape a Metaverse for Kids

The companies firm up their partnership on a family-friendly virtual world

Rafael Canton

About

Subscriptions

Events

Publications

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

Rafael Canton