Disney has announced a significant investment of $1.5 billion in Epic Games, the creators of the globally renowned Fortnite, marking Disney’s grand entry into the realm of video games. The revelation came during Disney’s CEO Bob Iger’s statement on February 7, illuminating the company’s strategic vision during its earnings conference call, which was reported on Moneycontrol.
Disney’s investment in Epic Games is not just about financial backing; it’s about shaping a new frontier in gaming and entertainment. The collaboration aims to create a fresh ‘games and entertainment universe,’ melding Disney’s storytelling prowess with the immersive landscape of Fortnite. This alliance will allow players to not only engage in gaming but also to consume, create, and shop for digital and physical goods seamlessly within the Fortnite ecosystem.
Bob Iger expressed enthusiasm about leveraging this association to attract younger audiences, acknowledging the significant chunk of screen time the younger population gives to gaming. He defined plans for this new universe to serve as a channel for promoting connections with Disney’s iconic brands and franchises, like Marvel and Star Wars, among others.
This innovative venture foresees a versatile experience where users can play Disney-created games, forge their gaming narratives, interact with fellow gamers, and consume content, including short-form videos. Moreover, Iger hinted at the potential use of the platform for content distribution, thus expanding Disney’s digital footprint.
Integral to this endeavour is the utilization of Epic Games‘ Unreal Engine, a robust game development platform that powers immersive experiences across various mediums. Tim Sweeney, founder and CEO of Epic Games, said that Disney’s early belief in the convergence of their worlds within Fortnite and repeated their commitment to fostering an inclusive ecosystem that bridges the Disney and Fortnite communities.
The collaboration between Disney and Epic Games is rooted in a history of collaboration, including Fortnite content integrations, live events, and cinematic experiences. The Marvel Nexus War event hosted on Fortnite witnessed a staggering 15.3 million concurrent players, underlining the synergy between these entertainment giants.
Beyond the gaming realm, this investment also sheds light on the contrary relationships Disney and Epic Games share with tech giant Apple. While Disney has fostered a close bond with Apple over the years, Epic Games has been embroiled in legal disputes with Apple, highlighting the intricate dynamics within the tech and entertainment spheres.
Disney’s foray into gaming with this investment marks a departure from its previous strategy of a traditional licensing model. It shows Disney’s key mission of engaging audiences across diverse platforms.
This investment comes on the heels of Epic Games’ recent funding injection from Sony and Kirkbi, signalling Epic’s ambition to expand its gaming ecosystem. It also underscores Disney’s continued evolution in digital entertainment and its eagerness to explore new frontiers.