Epic nets $1 billion in funding, including $200 million investment from Sony

Epic Games has secured $1 billion in funding to support its "long-term vision for the metaverse."

Notably, the round places Epic's equity valuation at $28.7 billion and includes a $200 million strategic investment from Sony, which last year purchased a minority stake in the Fortnite developer for $250 million. 

Epic founder and CEO Tim Sweeney said the cash will allow the company to "accelerate" its work around creating social experiences in Fortnite, Rocket League, and Fall Guys, while continuing to expand the Epic Games Store, Unreal Engine, and Epic Online Services. 

That sentiment was echoed by Sony chairman, president, and CEO Kenichiro Yoshida, who said the PlayStation maker was excited to strengthen its collaboration with Epic with a view to bringing "new entertainment experiences to people around the world."

The news comes as Epic prepares to duke it out with Apple in court over the iPhone maker's decision to remove Fortnite from the App Store. The two companies are due to head to trial on May 3, and recently submitted court documents that show the eye-watering cost of running the Epic Games Store.