Epic Games overview
Epic Games makes games, the tools used to build them and a store that sells them. Its Unreal Engine is one of the most widely used engines for commercial 3D games and has spread into film and television production, architecture and car design. Fortnite, the free-to-play game Epic launched in 2017, became a global hit and now doubles as a platform where independent creators publish their own games, while the Epic Games Store sells PC games and, since 2024, mobile games.
Tim Sweeney started the company in 1991 as Potomac Computer Systems, working from his parents’ house in Potomac, Maryland, while studying mechanical engineering at the University of Maryland. Its first product was ZZT, a shareware game he wrote himself. Renamed Epic MegaGames in 1992, the company brought in Mark Rein as a business partner and published a run of shareware titles. Sweeney then spent years writing the engine behind the 1998 shooter Unreal. The studio moved to Cary, North Carolina, in 1999, shortened its name to Epic Games and went on to develop the Gears of War games for Microsoft’s Xbox 360.
Two developments in the 2010s reshaped the company. In 2012 Tencent bought about 40 percent of Epic, an investment meant to help it shift toward games run as ongoing services, and in 2015 Epic made Unreal Engine 4 free to download in exchange for royalties. Then Fortnite Battle Royale, released in September 2017, passed 125 million players in less than a year. Its revenue paid for the Epic Games Store, which opened in December 2018 taking a 12 percent cut of sales, for acquisitions such as Rocket League developer Psyonix and for growth that investors including Sony and Kirkbi valued at $32 billion in 2022. Disney added a $1.5 billion investment in 2024.
Epic is also known for its legal battles over mobile app stores. In 2020 it added direct payments to Fortnite on iOS and Android, and when Apple and Google removed the game, it sued both. The Apple case went mostly in Apple’s favor in 2021, but a 2025 contempt ruling barred Apple from charging commissions on purchases made through outside payment links, and in June 2026 the Supreme Court agreed to hear Apple’s appeal of that finding. Against Google, a jury sided with Epic in December 2023, and although the two companies announced a settlement in March 2026, they withdrew it in July, leaving in force the court’s 2024 order requiring Google to open its Play store to rival app stores.
The company has also had to cut back. It laid off about 16 percent of its staff and sold the music site Bandcamp in 2023. In March 2026, citing falling Fortnite engagement, it laid off more than 1,000 employees and shut down several Fortnite modes, and in August 2026 it sold ArtStation and Sketchfab to KitBash to concentrate on Unreal Engine, Fortnite and its store. In May 2026 Epic announced Unreal Engine 6.
Software by Epic Games
3 products profiled, from Unreal Engine (1998) to Epic Games Store (2018).
- Unreal EngineEpic Games’ real-time 3D engine for games, film and visualization Games & Game Engines 1998 Usage-based
- FortniteEpic Games’ free-to-play battle royale and platform for player-made games Games & Game Engines 2017 Free-to-play
- Epic Games StoreEpic’s PC and mobile game store, known for its weekly free games Games & Game Engines 2018 Free
Epic Games history and milestones
- 1991
Tim Sweeney founds Potomac Computer Systems in Potomac, Maryland, and releases the shareware game ZZT.
- 1992
The company becomes Epic MegaGames, and Mark Rein joins as Sweeney’s business partner.
- 1998
Epic releases the first-person shooter Unreal, which debuts the Unreal Engine.
- 1999
The company moves to Cary, North Carolina, and changes its name to Epic Games.
- 2006
Gears of War launches on the Xbox 360, running on Unreal Engine 3.
- 2012
Tencent acquires a stake of about 40 percent in Epic Games.
- 2017
Fortnite enters early access, and its free Battle Royale mode follows in September.
- 2018
The Epic Games Store opens on December 6, taking a 12 percent share of sales.
- 2020
Epic sues Apple and Google after both remove Fortnite from their mobile app stores.
- 2024
Disney invests $1.5 billion in Epic, and the Epic Games Store launches on Android and on iOS in the EU.
- 2026
Epic lays off more than 1,000 employees and announces Unreal Engine 6, and a proposed settlement with Google is withdrawn.
Who founded Epic Games?
Tim Sweeney
Founder and CEO
Tim Sweeney grew up in Potomac, Maryland, and taught himself to program as a teenager. While studying mechanical engineering at the University of Maryland, he wrote the shareware game ZZT and sold it through Potomac Computer Systems, the company that became Epic Games. He went on to write much of the original Unreal Engine for the 1998 game Unreal and has run Epic as chief executive since its founding.
Sweeney has argued for years that the 30 percent commissions charged by app stores are too high, and he led Epic’s lawsuits against Apple and Google. He is also one of the largest private landowners in North Carolina, where he has bought tens of thousands of acres of forest for conservation and donated land such as 7,500 acres in the Roan Highlands.
How Epic Games makes money
Fortnite is free to play and earns money from V-Bucks, the in-game currency players buy for cosmetic outfits, emotes and battle passes, and from the monthly Fortnite Crew subscription. Independent creators who publish islands inside Fortnite receive payouts based on how much their games are played and, since 2025, can sell their own in-game items. Epic’s other big games, Rocket League and Fall Guys, also use free-to-play models built on optional purchases.
Unreal Engine is free to download, but developers pay Epic a royalty on game revenue above a set threshold, with sales through the Epic Games Store exempt, and larger companies that use the engine outside games pay for per-seat subscriptions. The Epic Games Store keeps 12 percent of most game sales, though since June 2025 it has waived its cut on a developer’s first $1 million in revenue. Epic also runs Fab, a marketplace where artists sell 3D assets, and uses weekly free game giveaways to bring players to the store.
Who owns and runs Epic Games?
Tim Sweeney founded Epic Games in 1991 and has been its chief executive ever since; he is also its controlling shareholder. Mark Rein, who joined in 1992, is vice president. Epic is privately held. Tencent bought a large minority stake in 2012, and later investors include Sony, Kirkbi, the parent company of the Lego Group, and the Walt Disney Company, which agreed in February 2024 to invest $1.5 billion for an equity stake as part of a partnership to build a Disney entertainment universe connected to Fortnite.
- Tim SweeneyFounder, CEO and controlling shareholder
- Mark ReinVice president; with Epic since 1992
- Steven AllisonVice president and general manager, Epic Games Store
Epic Games: frequently asked questions
Who founded Epic Games?
Epic Games was founded by Tim Sweeney in 1991, while he was a mechanical engineering student at the University of Maryland. He started it as Potomac Computer Systems in his parents’ house in Potomac, Maryland, renamed it Epic MegaGames in 1992 and adopted the name Epic Games after moving the company to North Carolina in 1999.
Who owns Epic Games?
Epic Games is a private company controlled by its founder and CEO, Tim Sweeney. Chinese technology company Tencent has held a large minority stake since 2012, and other minority shareholders include Sony, Kirkbi, the parent company of the Lego Group, and the Walt Disney Company, which invested $1.5 billion in 2024.
Who is the CEO of Epic Games?
Tim Sweeney is the CEO of Epic Games. He founded the company in 1991, wrote much of the original Unreal Engine and has run Epic ever since, leading it through the success of Fortnite, the launch of the Epic Games Store and its antitrust lawsuits against Apple and Google.
Where is Epic Games headquartered?
Epic Games is headquartered in Cary, North Carolina, a town next to Raleigh. The company was founded in Potomac, Maryland, and moved to Cary in 1999. It also has studios and offices in other countries, including teams from acquired developers such as Psyonix, which makes Rocket League.
What software does Epic Games make?
Epic Games makes Unreal Engine, a real-time 3D engine used for games, film and design; Fortnite, a free-to-play game and creation platform; and the Epic Games Store for PC and mobile games. Its other products include Rocket League, Fall Guys, MetaHuman character tools, the Twinmotion visualization app and the Fab asset marketplace.
Why did Epic Games sue Apple and Google?
Epic sued both companies in August 2020 after they removed Fortnite for offering direct in-game payments that bypassed their commissions. A court ruled mostly for Apple in 2021 but ordered it to allow links to outside payments, and the Supreme Court agreed in 2026 to hear Apple’s appeal of a related contempt finding. Google lost a jury trial in 2023, and a settlement the two companies announced in 2026 was later withdrawn.
Is Epic Games a public company?
No. Epic Games is privately held and its shares do not trade on a stock exchange. It has raised billions of dollars from private investors, including Tencent, Sony, Kirkbi and Disney, and was valued at $32 billion in a 2022 funding round, but founder Tim Sweeney retains control of the company.
Sources
- Epic Games, Wikipedia en.wikipedia.org
- Tim Sweeney, Wikipedia en.wikipedia.org
- Disney and Epic Games to Create Expansive and Open Games and Entertainment Universe Connected to Fortnite thewaltdisneycompany.com
- Epic Games v. Google, Wikipedia en.wikipedia.org
- Apple v. Epic Games, Wikipedia en.wikipedia.org
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