Disney partners with Fortnite creator Epic Games with a substantial $1.5 billion investment to create an immersive metaverse experience within Fortnite.
Disney’s Billion-Dollar Move
In a strategic move in line with the evolving relationship between entertainment and Web3, Disney has announced a substantial investment in Epic Games, signaling its second foray into the metaverse space. The collaboration aims to create an immersive virtual universe with Epic's flagship game, Fortnite, leveraging Disney's vast array of beloved franchises.
Disney's commitment to the venture includes a staggering $1.5 billion investment to secure an equity stake in Epic Games. This significant financial backing underscores Disney's confidence in the project's potential and marks its largest entry into the gaming realm to date.
Collaborative Project Details
The multi-year project, pending regulatory approval, will operate within Fortnite's framework. The universe plans to integrate characters and narratives from Disney, Pixar, Marvel, Star Wars, and Avatar properties. Powered by Epic Games' Unreal Engine, renowned for its cutting-edge technology, the project aims to redefine interactive entertainment.
Disney CEO Robert A. Iger expressed enthusiasm for the partnership, saying,
“Our exciting new relationship with Epic Games will bring together Disney’s beloved brands and franchises with the hugely popular Fortnite in a transformational new games and entertainment universe. This marks Disney’s biggest entry ever into the world of games and offers significant opportunities for growth and expansion. We can’t wait for fans to experience the Disney stories and worlds they love in groundbreaking new ways.”
Strategic Shift and Financial Context
This collaboration marks a notable shift for Disney, coming on the heels of its decision to disband its metaverse division less than a year ago. Back then, it appeared that the company was backtracking on its metaverse ambitions, resulting in the departure of a dedicated team of almost 50 employees.
However, the company's first-quarter earnings report for 2024, which coincided with its latest metaverse announcement, revealed underperforming box office and streaming releases in 2023. This could be one of the factors that inspired the Disney team to take another crack at Web3 and Metaverse.
Previous Collaborative Endeavors
Epic Games, no stranger to ambitious projects, has previously partnered with industry giants like Sony and Lego Group to develop immersive experiences. Notably, the collaboration resulted in Lego Fortnite, highlighting Epic Games' track record of innovation and collaboration in the gaming industry. Back in 2022, the company had also launched its own NFT-powered digital game on the Epic Games marketplace.
CEO and founder Tim Sweeney spoke on the collaboration with Disney,
“Disney was one of the first companies to believe in the potential of bringing their worlds together with ours in Fortnite, and they use Unreal Engine across their portfolio. Now we’re collaborating on something entirely new to build a persistent, open and interoperable ecosystem that will bring together the Disney and Fortnite communities.”
Sweeney has always believed in the metaverse's potential. In the past, he dismissed claims of its demise and highlighted its vitality by pointing to the presence of 600 million monthly active users across various metaverses as of May 2023.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
