Disney will reportedly take a $1.5 Billion stake in Fortnite-creator, Epic Games, as part of a deal that aims to create a massive "all-new games and entertainment universe" between the two giants.
The newly-announced deal will reportedly be a tie-in with Fortnite to bring characters from Disney's extensive library to life allowing users to interact with characters and plots from Pixar, Disney, Marvel, Star Wars, and other properties while also playing games, watching movies, and shopping.
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Attendees are reflected in Disney+ logo during the Walt Disney D23 Expo in Anaheim, California on September 9, 2022.
It is stated it will also be possible for gamers, fans, and players to craft original tales and experiences as well as show off their fandom in a very Disney manner. The deal was disclosed during Disney's Q1 FY24 Earnings Call.
The partnership will make use of Epic's Unreal Engine and aim to integrate with Fortnite, connecting to Epic's pre-existing social gaming network on the internet.
As per a CNBC interview, Disney's CEO, Bob Iger stated that the investment was likely their largest ever venture into the video gaming industry. Iger continued, saying that given the demographic patterns and the ways in which Gen Alpha, Gen Z, and even millennials are consuming media and time, he believes the move is not only appropriate but also a significant step forward.
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Disney's Gaming Ventures
The collaboration follows Disney's successful licensing of characters like Spider-Man for popular video games and its cooperation with Epic to bring characters to Fortnite from Marvel, Star Wars, "The Nightmare Before Christmas," "Tron," and other franchises.
Although no further information was provided regarding the project or its anticipated release date, IGN states that it is believed to be a multi-year endeavor that builds on the several occasions that Disney and Epic collaborated on Fortnite.
Bloomberg reports that the two have worked together for many years prior to this billion-dollar deal, notably through Disney's Accelerator program, which pairs leaders from the company with smaller companies to mentor them. Avatars based on Marvel, Star Wars, and Indiana Jones characters were all made available to Fortnite users thanks to Epic.
IGN adds there have also been live events like the Marvel Nexus War with Galactus, which drew in 15.3 million players simultaneously.
As per sources, Disney's video game business by itself has seen ups and downs. The business closed down a substantial portion of its game division in 2016 after finding it difficult to produce big, hit games internally. Disney now licenses its intellectual property to independent publishers and developers, such as Sony Group and Electronic Arts Inc.
Epic's Biggest Collaborations
Disney is reportedly the latest major deal for Epic Games and Fortnite after just a few months Lego Fortnite was released. A collaboration with the Lego Group's parent company, Kirkbi, who also invested $1 billion in Epic in 2022 so that the latter could create online experiences utilizing its trademark.
When Lego Fortnite was introduced last year, it had up to two million players. It featured characters in the classic Lego design. Alongside the release of Lego Fortnite came Rocket Racing, a racing game from the same team that created Rocket League, and Fortnite Festival, a music game.
With that debut, Fortnite reportedly entered a new chapter as Epic activities pushed hard to develop the game beyond its battle royale roots and provide a platform for a variety of different experiences and activities.
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