unreal engine

Improbable and Epic Games establish $25M fund to help devs move to ‘more open engines’ after Unity debacle

Posted by | epic games, Gaming, improbable, unity, unreal engine | No Comments

Improbable is taking a daring step after announcing earlier today that Unity had revoked its license to operate on the popular game development engine.

The U.K.-based cloud gaming startup has inked a late-night press release with Unity rival Epic Games, which operates the Unreal Engine and is the creator of Fortnite, establishing a $25 million fund designed to help game developers move to “more open engines.”

An incoming blog post penned by Epic Games CEO Tim Sweeney and Improbable CEO Herman Narula reads, in part:

To assist developers who are left in limbo by the new engine and service incompatibilities that were introduced today, Epic Games and Improbable are together establishing a US $25,000,000 combined fund to help developers transition to more open engines, services, and ecosystems. This funding will come from a variety of sources including Unreal Dev Grants, Improbable developer assistance funds, and Epic Games store funding.

This is pretty bold on Improbable’s part and seems to suggest that Unity didn’t give them a call after Improbable published a blog post that signed off with, “You [Unity] are an incredibly important company and one bad day doesn’t take away from all you’ve given us. Let’s fix this for our community, you know our number.”

Unity, for its part, claims that they gave Improbable ample notice that they were in violation of their Terms of Service and that the two had been deep in a “partnership” agreement that obviously fell short. The termination of Improbable’s Unity license essentially cut them off from a huge portion of indie developers who build their stuff on Unity.

Epic Games CEO Tim Sweeney was quick to jump on the news earlier today, rebuking Unity’s actions.

This highlights a point: In the ecosystem like Unreal, Unity or Godot, companies live and die by the ground rules that are established. Devs have put years of their lives into building something, and nothing is worse than changing the rules and confiscating their investments.

— Tim Sweeney (@TimSweeneyEpic) January 10, 2019

“Epic Games’ partnership with Improbable, and the integration of Improbable’s cloud-based development platform SpatialOS, is based on shared values, and a shared belief in how companies should work together to support mutual customers in a straightforward, no-surprises way,” the blog post reads.

In a way this is a positive development for Improbable, suggesting that Epic Games is committed to sticking with the startup, but at the same time, one wonders how Unity and Improbable’s relationship managed to sour so quickly based on what’s been said publicly today.

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Epic Games, the creator of Fortnite, banked a $3 billion profit in 2018

Posted by | 2018 Year in Review, Android, Apps, Beijing, China, computing, epic games, fortnite, fortnite battle royale, game publisher, Gaming, Google, Google Play Store, Kleiner Perkins, lightspeed, Nintendo, sensor tower, smartphone, Software, Tencent, the wall street journal, unreal engine, wall-street-journal | No Comments

Epic Games had as good a year in 2018 as any company in tech. Fortnite became the world’s most popular game, growing the company’s valuation to $15 billion, but it has helped the company pile up cash, too. Epic grossed a $3 billion profit for this year fueled by the continued success of Fortnite, a source with knowledge of the business told TechCrunch.

Epic did not respond to a request for comment.

Fortnite, which is free to play but makes money selling digital items, has popularized the battle royale category — think Lord of the Flies meets Hunger Games — almost single-handedly, and it has been the standout title for the U.S.-based game publisher.

Founded way back in 1991, Epic hasn’t given revenue figures for its smash hit — which has 125 million players — but this new profit milestone, combined with other pieces of data, gives an idea of the success the company is seeing as a result of a prescient change in strategy made six years ago.

This past September, Epic commanded a valuation of nearly $15 billion, according to The Wall Street Journal, as marquee investors like KKR, Kleiner Perkins and Lightspeed piled on in a $1.25 billion round to grab a slice of the red-hot development firm. However, the investment cards haven’t always been stacked in Epic’s favor.

China’s Tencent, the maker of blockbuster chat app WeChat and a prolific games firm in its own right, became the first outside investor in Epic’s business back in 2012 when it injected $330 million in exchange for a 40 percent stake in the business.

Back then, Epic was best known for Unreal Engine, the third-party development platform that it still operates today, and top-selling titles like Gears of War.

Why would a proven company give up such a huge slice of its business? Executives believed that Epic, as it was, was living on borrowed time. They sensed a change in the way games were headed based on diminishing returns and growing budgets for console games, the increase of “live” games like League of Legends and the emerging role of smartphones.

Speaking to Polygon about the Tencent deal, Epic CEO Tim Sweeney explained that the investment money from Tencent allowed the company to go down the route of freemium games rather than big box titles. That’s a strategy Sweeney called “Epic 4.0.”

“We realized that the business really needed to change its approach quite significantly. We were seeing some of the best games in the industry being built and operated as live games over time rather than big retail releases. We recognized that the ideal role for Epic in the industry is to drive that, and so we began the transition of being a fairly narrow console developer focused on Xbox to being a multi-platform game developer and self publisher, and indie on a larger scale,” he explained.

Tencent, Sweeney added, has provided “an enormous amount of useful advice,” while the capital enabled Epic to “make this huge leap without the immediate fear of money.”

LOS ANGELES, CA – JUNE 12: Gamers ‘Ninja’ (L) and ‘Marshmello’ compete in the Epic Games Fortnite E3 Tournament at the Banc of California Stadium on June 12, 2018 in Los Angeles, California. (Photo by Christian Petersen/Getty Images)

Epic never had a problem making money — Sweeney told Polygon the first Gear of Wars release grossed $100 million on a $12 million development budget. But with Fortnite, the company has redefined modern gaming, both by making true cross-platform experiences possible and by pulling in vast amounts of money.

As a private company, Epic keeps its financials closely guarded. But digging beyond the $3 billion figure — which, to be clear, is annual profit not revenue — there are clues as to just how big a money-spinner Fortnite is. Certainly, there’s room to wonder whether analyst predictions this summer that Fortnite would gross $2 billion this year were too conservative.

The most recent data comes from November when Sensor Tower estimates that iOS users alone were spending $1.23 million per day. That helped the game bank $37 million in the month and take its total earnings within Apple’s iOS platform to more than $385 million.

But, as mentioned, Fortnite is a cross-platform title that supports PlayStation, Xbox, Switch, PC, Mac, Android and iOS. Aggregating revenue across those platforms isn’t easy, and the only real estimate comes from earlier this year when Super Data Research concluded that the game made $318 million in May across all platforms.

That is, of course, when Fortnite was fresh on iOS, non-existent on Android and with fewer overall players.

We can deduce from Sensor Tower’s November estimate that iOS pulled in $385 million over eight months — between April and November — which is around $48 million per month on average. Android is harder to calculate since Epic skipped Google’s Play Store by distributing its own launcher. While it quickly picked up 15 million Android users within the first month, tracking that spending off-platform is a huge challenge. Some estimates predicted that Google would miss out on around $50 million in lost earnings this year because in-app purchases on Android would not cross its services.

There are a few factors to add further uncertainty.

Fortnite spending tends to spike around the release of new seasons — updated versions of the game — since users are encouraged to buy specific packages at the start. The latest, Season 7, dropped early this month with a range of tweaks for the Christmas period. Given the increased velocity at which Fortnite is picking up players and the appeal of the festive period, this could have been its biggest revenue generator to date, but there’s not yet any indicator of how it performed.

More broadly, Fortnite has undoubtedly lost out on revenue in China, which froze new game licenses nine months ago, thereby preventing any publishers from monetizing new titles over that period.

Tencent, which publishes Fortnite in China, did release the game in the country but it hasn’t been able to draw revenue from it yet. The Chinese government announced last week that it is close to approving its first batch of new titles, but it isn’t clear which games are included and when the process will be done.

Already, the effects have been felt.

Games are forecast to generate nearly $40 billion in revenue in China this year, according to market researcher Newzoo. However, the industry saw its slowest growth over the last 10 years as it grew 5.4 percent year-over-year during the first half of 2018, according to a report by Beijing-based research firm GPC and China’s official gaming association CNG.

Fortnite and PUBG — another battle royale title backed by Tencent — have perhaps suffered the most since they are universally popular worldwide but unable to monetize in China. It seems almost certain that those two titles will receive a major marketing push if, as and when they receive the license and, if Epic can keep the game competitive as Sweeney believed it could back in 2012, then it could go on and make even more money in 2019.

Epic Games is taking on Steam with its own digital game store, which includes higher take-home revenue rates for developers.

But Epic isn’t relying solely on Fortnite.

A more low-key but significant launch this month was the opening of the Epic Games store, which is aimed squarely at Steam, the leader in digital game sales.

While Fortnite is its most prolific release, Epic also makes money from other games, Unreal Engine and a recently launched online game store that rivals Steam. Epic’s big differentiator for the store is that it gives developers 88 percent of their revenue, as opposed to Value — the firm behind Steam — which keeps 30 percent, although it has added varying rates for more successful titles. Customers are promised a free title every two weeks.

Either way, Epic is betting that it can do a lot more than Fortnite, which could mean that its profit margin will be even higher come this time next year.

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The Epic Games Store is now live

Posted by | Android, epic games, first person shooters, fortnite, Gaming, Google, Google Play Store, Kleiner Perkins, lightspeed venture partners, unreal engine, Unreal Tournament | No Comments

It’s a busy week for Epic Games . Fresh from pushing out a major season 7 update for Fortnite, so the gaming giant has taken the wraps off its own games store.

First announced earlier this week, the Epic Games Store is targeted squarely at Steam — the giant in the digital game commerce space — and it quietly went live today.

Right now there’s a small cluster of games available, including Hades, a new title from Supergiant Games that is in “early access” for $19.99, and Epic’s own Fortnite and Unreal Tournament, both of which are free. But Epic is saying that’s there’s a lot more to come. In particular, the store will offer a free game every two weeks, starting with Subnautica from December 14-17 and Super Meat Boy from December 28 until January 10.

What is most interesting about the store is the revenue split, which is just 12 percent. That has set off a change at Valve, the firm behind Steam, as we reported earlier this week:

While Valve will continue to take an App Store-like 30 percent from sales of game makers with less than 10 million in revenue, that figure drops to 25 percent until they hit 50 million revenue, from which point the slice drops to 20 percent.

All in all, the store is very early-stage, but you can imagine that Epic is working to add more flesh to the bones. It makes absolute sense that the company is aiming to capitalize on the phenomenal success of Fortnite — which was estimated to be grossing as much as $2 million per day in the summer — by building a destination for gamers. Indeed, a big clue came from its decision to bypass the Google Play Store and offer its Android app directly from its website — that’s a move that is estimated to cost Google around $50 million in lost earnings in 2018.

“As a developer ourselves, we have always wanted a platform with great economics that connects us directly with our players,” Epic Games CEO Tim Sweeney told TechCrunch in an emailed statement sent earlier this week. “Thanks to the success of Fortnite, we now have this and are ready to share it with other developers.”

The Epic Games Store is part of a wider vision that prompted a range of investors to pump $1.25 billion into the company in October. That round has participation from the likes of KKR, Kleiner Perkins and Lightspeed Venture Partners and it is said to value the Epic Games business — which also includes Unreal Engine for game development — at more than $15 billion.

Epic is the only gaming firm to go after Valve this year. Discord introduced a game store in August — just months earlier, Valve appeared to go after Discord with the rollout of its own gamer chat system.

So everyone is going after everyone, but Epic’s big advantage continues to be Fortnite.

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Unreal’s ‘photorealistic character sample’ is like a Rob Lowe from the uncanny valley

Posted by | 3D modeling, Gaming, TC, unreal engine, WTF | No Comments

 Making the character models you see in games is a very involved process, and as a few recent titles have shown, the faces especially are hard as hell to do right. The folks behind Epic’s Unreal Engine, which powers more than a few of those games, have kindly offered a ‘photorealistic character sample’ — a Rob Lowe-looking dude who looks almost real enough to touch. Almost. Read More

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NASA is using a mixed reality space station to train astronauts

Posted by | astronauts, augmented reality, Education, Gaming, Government, mixed reality, NASA, robotics, science, TC, Training, unity, unreal engine, Virtual reality | No Comments

 NASA has always embraced emerging technology for visualization, even if that tech was seemingly developed for frivolous entertainment. We recently covered its holographic Mars exhibit, and the many 3D resources that NASA makes available to developers and educators. Now, the US space agency has partnered with Epic Games’ Unreal Engine to create a mixed reality International Space… Read More

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Unity raises $181M monster round at a reported $1.5B valuation

Posted by | game engine, Gaming, TC, unity-technologies, unreal engine, Virtual reality | No Comments

Unity-money Over the last few years, Unity Technologies has grown to become indispensable to the gaming industry and much of the entertainment industry as an engine for building experiences in one place and distributing them across a swath of platforms. Now, with the rise of augmented and virtual reality, we are rapidly approaching the likelihood that the future will be built on Unity.
To do that, the… Read More

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Native OSVR support comes to Unreal game engine

Posted by | Gaming, osvr, TC, unreal engine, Unreal Engine 4, Virtual reality | No Comments

Razer OSVR Headset For gamers worried about exclusive Oculus titles and the diverging future of content support on virtual reality, OSVR is making a bid to take over the platform and ensure that content is available across all hardware. The ecosystem received a major vote of confidence today from one of the largest gaming engines used by developers. Sensics, which helped lead the creation of OSVR alongside… Read More

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Pinball In Virtual Reality? Yes Please

Posted by | Apps, Entertainment, Gadgets, games, Gaming, pinball, Social, unreal engine, Virtual reality, VR, Wearables | No Comments

Screen Shot 2015-12-21 at 11.26.11 AM OK, it doesn’t exist just yet, but one group called “Pinball Labs” has a new Kickstarter to bring back the feels you felt when you entered an arcade with tons of pinball games. There’s nothing like the sounds and visuals of old pinball machines (I love Addams Family) and it could become a…reality once again in VR. The Kickstarter recently went live and this video… Read More

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