The Walt Disney Company has announced a $2.29 billion (US$1.5 billion) stake in Fortnite game developer Epic Games, setting up a “games and entertainment universe” featuring content and characters from some of Disney’s most popular IP.
While Epic Games has been around since the early 90s, the company skyrocketed to global success in 2017 when it developed popular videogame Fortnite – an online title now boasting some 70 million active monthly players.
The title is a cultural bedrock among younger players, and is best known for its regular crossovers and collaborations with other pop-culture franchises – including those from Disney and its high-profile subsidiary Marvel.
In a 7 February statement, multimedia conglomerate Disney said it is investing $2.29 billion in a bid to acquire an equity stake in the leading game developer.
“This marks Disney's biggest entry ever into the world of video games and offers significant opportunities for growth and expansion,” said Disney chief executive Bob Iger.
Disney signalled a “multi-year project” which will offer a “multitude of opportunities” for consumers to play games and watch content from Disney and its leading franchises, including “Pixar, Marvel, Star Wars, Avatar and more”.
The project has only been teased so far – leaving consumers to speculate over the precise shape of the entertainment product – however Disney has described it as an “expansive and open” games and entertainment universe connected to Fortnite.
Early concept art suggests the project will open multiple virtual lands based on popular franchises such as Wreck-It Ralph and The Nightmare Before Christmas, and will feature other content related to streaming service Disney+, production company Lucasfilm, and sports network ESPN.
Disney has been relatively quiet in the video game sector since 2016 after it shut down its Interactive Studios division – a game developer and publisher which once bought reported annual losses of $306 million (US$200 million) per year.
While gamers have been anticipating a gradual comeback from the company following recent releases such as Disney Dreamlight Valley – a casual life-simulation videogame which incorporates countless Disney IPs and allows players to exchange real-life money for in-game currency – the new engagement with Epic Games signals a much greater foray into gaming than expected.
In the company’s Earnings Conference Call for the first quarter of FY24, Iger teased big plans for its collaboration with Epic Games.
“Our new relationship with Epic Games will create a transformational games and entertainment universe that integrates Disney's world-class storytelling into Epic's cultural phenomenon, Fortnite, enabling consumers to play, watch, create, and shop for both digital and physical goods.”
Iger further explained the historical stake was largely motivated by major market potential for gaming in younger audiences.
“Younger audiences, in particular, are huge consumers of video games,” said Iger.
“When I saw Gen Z and Gen Alpha, and Millennials – the amount of time they were spending in terms of total media screen time on video games, it was stunning.
“Equal to what they spend on TV and movies.
“The conclusion I reached – we have to be there.”
At the time of writing, no release date has been announced for the multi-year project.
