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Epic Games, Inc.

Video gamesFounded 1991
Reviewed by Swet Parvadiya
Company data updated: October 2026

Acquisitions

Epic Games Acquisitions

4

Major Deals Covered

What are Epic Games's biggest acquisitions?

This page covers 4 major deals from 2019 to 2022, each with its price where disclosed and the reason behind it.

Major deals covered
4
First deal
2019
Most recent
2022
CompanyYearPricePurpose
Psyonix2019UndisclosedEpic Games acquired Psyonix, the developer of Rocket League, to add an established competitive gaming title with a large dedicated player base to its portfolio alongside Fortnite. Rocket League had over 50 million players and an active esports scene at the time of acquisition.
Tonic Games Group2021UndisclosedEpic acquired Tonic Games Group, the developer of Fall Guys: Ultimate Knockout, to add the popular multiplayer party game to its portfolio. Fall Guys had sold 10 million copies within days of launch in 2020 and had a social media presence.
Bandcamp2022UndisclosedEpic acquired Bandcamp, the music marketplace that allows independent artists to sell music directly to fans, as part of its broader strategy to build a creator economy platform that competed with platforms like Spotify and SoundCloud in the independent music space.
Sketchfab2021UndisclosedEpic Games, Inc. acquired Sketchfab in 2021.
What companies has Epic Games bought?
Major acquisitions by Epic Games documented here include Bandcamp (2022), Tonic Games Group (2021), Sketchfab (2021) and Psyonix (2019).
What is Epic Games's most recent acquisition?
The most recent Epic Games acquisition documented here is Bandcamp, in 2022.

Bandcamp

2022

Why

Epic acquired Bandcamp, the music marketplace that allows independent artists to sell music directly to fans, as part of its broader strategy to build a creator economy platform that competed with platforms like Spotify and SoundCloud in the independent music space.

Impact

The acquisition gave Epic a foothold in the music industry and was initially seen as part of a broader metaverse and creator platform strategy. Bandcamp operated independently and maintained its artist-first positioning that had made it popular with independent musicians globally.

Outcome

Epic sold Bandcamp to Songtradr in 2023, just over a year after acquiring it, following the significant layoffs that accompanied Epic broader restructuring. The sale reflected the difficulty of connecting music and gaming ecosystems and Epic refocus on its core gaming and technology platform businesses.

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Tonic Games Group

2021

Why

Epic acquired Tonic Games Group, the developer of Fall Guys: Ultimate Knockout, to add the popular multiplayer party game to its portfolio. Fall Guys had sold 10 million copies within days of launch in 2020 and had a social media presence.

Impact

The acquisition gave Epic another major gaming title to make free to play on the Epic Games Store, following the same strategy that worked with Rocket League. Fall Guys free-to-play transition in 2022 attracted tens of millions of new players and drove significant Epic Games Store engagement.

Outcome

Fall Guys has continued to receive regular content updates under Epic ownership. The title's bright visuals and family-friendly gameplay have made it one of the most streamed games on Twitch and YouTube, providing ongoing marketing value for the Epic Games brand beyond direct revenue generation.

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Sketchfab

2021

Why

Epic Games, Inc. acquired Sketchfab in 2021.

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Psyonix

2019

Why

Epic Games acquired Psyonix, the developer of Rocket League, to add an established competitive gaming title with a large dedicated player base to its portfolio alongside Fortnite. Rocket League had over 50 million players and an active esports scene at the time of acquisition.

Impact

The Psyonix acquisition gave Epic a second major game IP and expanded the Epic Games Store's exclusive content. Epic subsequently made Rocket League free to play in September 2020, expanding the player base and driving growth on the Epic Games Store platform.

Outcome

Rocket League has grown significantly under Epic ownership, with free-to-play conversion adding tens of millions of new players. The game has become one of the most popular esports titles globally and demonstrates Epic ability to accelerate growth of acquired gaming titles through its platform distribution.

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Epic Games, Inc.'s Growth & Acquisition Strategy

Epic is trying to turn Fortnite into a platform rather than a single game. It added LEGO Fortnite, Rocket Racing and Fortnite Festival in December 2023, opened Unreal Editor for Fortnite (UEFN) to creators in March 2023, and pays creators from a shared engagement pool. Disney's $1.5 billion investment funds a persistent Disney universe connected to Fortnite. On the tools side, Epic pushes Unreal Engine 5, MetaHuman and the Fab asset marketplace into film, automotive and simulation, and uses court wins to expand the Epic Games Store on Android and iOS.

How Epic Games, Inc. Makes Money

Epic makes money in three main ways. 1) Fortnite and other first-party games (Rocket League, Fall Guys) are free to play and earn revenue from V-Bucks, Battle Passes, cosmetics, IP collaborations and the Fortnite Crew subscription. Through Creator Economy 2.0, Epic pays 40% of Fortnite's net revenue into an engagement pool for island creators. 2) Unreal Engine is free to download; Epic charges a 5% royalty on a game's gross revenue above the first $1 million, plus enterprise and seat-based licenses for film, automotive and simulation users. 3) The Epic Games Store takes a 12% commission on third-party sales (developers keep 88%), versus the 30% standard fee long charged by Steam, Apple and Google.

Epic Games Acquisitions FAQ

What are the most consequential corporate acquisitions in Epic Games' history?

Key historical acquisitions include Psyonix (2019 - creators of Rocket League), Mediatonic / Tonic Games Group (2021 - creators of Fall Guys), Quixel (2019 - Megascans photogrammetry library), Sketchfab (2021 - 3D asset marketplace), Harmonix (2021 - creators of Rock Band, Fortnite Festival), and RAD Game Tools (2021).

Why was the 2019 acquisition of Psyonix (Rocket League) significant for Epic?

Epic acquired San Diego-based game studio Psyonix in May 2019, transitioning Rocket League to a greatly successful free-to-play live service with cross-platform progression and integrating Rocket League vehicle cosmetics into Fortnite.

How did the 2021 acquisition of Mediatonic (Fall Guys) expand Epic's family gaming?

Epic acquired Tonic Games Group (Mediatonic) in March 2021, relaunching battle royale party game Fall Guys as a free-to-play cross-platform title powered by Epic Online Services, attracting over 50 million players in two weeks.

Why did Epic acquire Quixel Megascans in 2019?

Epic acquired Quixel (the world's largest photogrammetry asset library), making thousands of photorealistic 3D scans of real-world environments, rocks, plants, and textures completely free for all Unreal Engine creators.

How did the 2021 acquisition of Harmonix lead to Fortnite Festival?

Epic acquired veteran music game studio Harmonix (creators of Guitar Hero and Rock Band), leading to the development and launch of 'Fortnite Festival' in late 2023, an interactive rhythm music game featuring world-renowned recording artists (The Weeknd, Lady Gaga, Metallica).

Why did Epic acquire RAD Game Tools in 2021?

Epic acquired video game software developer RAD Game Tools to integrate its industry-standard compression codecs (Oodle) and video technology (Bink Video) directly into Unreal Engine, enabling ultra-fast loading times and smaller game file sizes.

What was the strategic purpose of acquiring 3D platform Sketchfab in 2021?

Epic acquired Sketchfab (the leading web platform for buying, selling, and managing 3D models), integrating its large library of over 4 million 3D models directly into Unreal Engine and paving the way for the 'Fab' unified marketplace.

What divestitures did Epic complete in late 2023 to focus on core gaming and the Metaverse?

In September 2023, Epic divested online indie music platform Bandcamp (sold to Songtradr) and spun off youth digital marketing company SuperAwesome to focus 100% of corporate resources on Fortnite, Unreal Engine, and the open Metaverse.

What companies has Epic Games acquired?

To aggressively build out the "Fortnite Metaverse," Epic executed massive acquisitions: Psyonix in 2019 (Rocket League), Mediatonic in 2021 (Fall Guys), and Harmonix in 2021 (Rock Band). They also bought Quixel and ArtStation to massively bolster the Unreal Engine ecosystem.

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