Y'know back when they announced they were buying Quixel I said
a few things:
I don't think its games studios they want per se, its that they want more tools to offer anyone who wants to make games (regardless of where they are on the spectrum - AAA, AA, indie etc). If someone needs a game engine - Epic have that, if they need specific content authoring tools - Epic will want to offer that (see purchases like this), if you need publishing then they offer that on PC etc etc etc. They want to make themselvess more attractive to the people who make content in ways other providers can't match (eg Unity).
Maybe next up is SideFX for Houdini, or Foundry if they want to go push more into VFX for movies/TV, or something like audio authoring tools, akin to Sony buying WWISE — maybe FMOD or ELIAS or something?
and:
Also the more I think about this, the upper end of AAA development aren't really using UE. They all have their own engines, so for Epic to increase their share of developers using it, the answer is to pursue dev studios below that by increasing the value of their toolset as mentioned above.
A good example of where their help will be needed will be in next-gen games where asset creation cost for the increased graphics will be higher. If you are Ubi or EA or Capcom or a first party studio etc etc, you can afford to have a team of people who will either create or scan assets for high quality terrain — for developers "lower" on the spectrum, then that is more of a higher commitment proportionally and this purchase is definitely something that can you.
I'm still surprised haven't heard of them going after SideFX or Foundry, but it's not hard to see why RAD Gaming Tools would be exactly the kind of thing they would want (Bink video & Kraken compression of Quixel Megascans for everyone who uses UE is an obvious use case).
- For those who would never be capable of creating/managing their own game engines, It continues to increase how comprehensive of an offering UE island provide you with access to functionality that would otherwise be beyond your means.
- For those who can afford to their own engine dev, It rebalances the financial incentives to do so by making the overall costs more attractive. By Intergrating more middleware as perks of using UE, they change the cost/value compared to developing an in-house engine
+ still needing separate licensing for Bink / Kraken etc anyway. (Sony already forked out for blanket licenses for Kraken which was super cool of them though).