The courtroom was silent as the judge read the figures aloud: $800 million. A collective gasp rippled through the gallery—had Epic Games just changed the game? Or had they just been played?
Fortnite’s dominance is no accident; Epic Games has relentlessly pursued every avenue to expand its reach. But few predicted this: a new, mutually beneficial partnership with Google, potentially worth $800 million (€740 million) over six years.
This revelation followed the settlement of a five-year legal battle between the two tech giants over Google’s Play Store policies. During a recent hearing, Epic Games CEO Tim Sweeney and economics expert Doug Bernheim faced questions about whether this deal influenced Epic’s stance in the legal dispute.
Tim Sweeney on Fortnite, Android, and the $800 Million Google Question
I remember the early days of the Play Store—a Wild West of apps. According to Doug Bernheim, this new $800 million (€740 million) partnership signifies “new business” between Epic and Google. Details remain scarce, but Sweeney’s recent testimony offers a glimpse: Google and Epic will collaborate on product development and marketing.
Judge Donato called the $800 million (€740 million) figure a “pretty healthy partnership,” noting the marketing synergy. Google will assist Epic in promoting Fortnite and other properties, while Epic will support Google in championing Android as an open ecosystem. Imagine the potential reach for Epic’s metaverse.
Will this deal impact the Epic vs. Google lawsuit?
Donato emphasized that the deal hinges on a resolution regarding standard Google Play Store commissions and alternative app store options. Sweeney admitted that a final agreement hadn’t been reached but expressed hope for its completion, viewing both the settlement and partnership as integral to Epic’s future growth. This is a high stakes game where allegiances can shift like sand.
This arrangement raised Donato’s concerns about whether the partnership might incentivize Epic to soften its stance in the ongoing legal battle. Sweeney countered, stating, “I don’t see anything crooked about Epic paying Google off to encourage much more robust competition than they’ve allowed in the past,” characterizing the deal as a “significant transfer of value from Epic to Google.”
What does this mean for the Unreal Engine?
Think of the Unreal Engine as the Hollywood backlot for the digital age. Sweeney highlighted the role of Unreal Engine and Epic Games’ metaverse, explaining, “Epic’s technology is used by many companies in the space Google is operating in to train their products, so the ability for Google to use the Unreal Engine more fullsome.”
This suggests Google intends to leverage the Unreal Engine extensively for product training, potentially in AI and simulation. However, Sweeney clarified that Epic and Google aren’t collaborating on a single product, stating, “This is Google and Epic each separately building product lines.”
How will this alliance affect mobile gaming?
This Google-Epic alliance is poised to disrupt the gaming industry, potentially shaping the future of mobile gaming. It’s a strategic dance, each partner hoping to lead. This isn’t just about Fortnite anymore; it’s about the infrastructure of the internet.
As Sweeney sees it, “This is Google and Epic each separately building product lines.”
That’s how Epic and Google envision the future, but is this a masterstroke, or a Faustian bargain that comes at the expense of competition?