Disney and Epic Games have unveiled plans for a groundbreaking collaboration aimed at revolutionising the gaming and entertainment landscape. The Walt Disney Company is set to invest a substantial sum of $1.5 billion to acquire an equity stake in Epic Games, pending regulatory approvals and customary closing conditions.
This partnership will usher in a new era of immersive experiences, seamlessly integrating Disney's iconic narratives into the world of Fortnite. The collaboration aims to provide consumers with a dynamic space where they can play, engage, and explore content from Disney, Pixar, Marvel, Star Wars, Avatar, and more. Powered by the cutting-edge Unreal Engine, this digital realm will empower players to create and share their own stories within a uniquely Disney environment.
Why Disney 'Had To Be There'
Robert A. Iger, CEO of The Walt Disney Company, expressed enthusiasm for this venture, emphasising Disney's commitment to expanding its presence in the gaming industry. The collaboration presents significant growth opportunities, offering fans fresh ways to engage with their favourite Disney franchises.
Tim Sweeney, CEO and Founder of Epic Games, noted Disney's early involvement in integrating its characters into Fortnite and highlighted the use of Unreal Engine across Disney's diverse portfolio.
"In terms of their total media screen time on video games, it was stunning to me - equal to what they spend on TV and movies," Iger said during a call with analysts and investors after reporting quarterly results, reported Reuters. "And the conclusion I reached was we have to be there. And we have to be there as soon as we possibly can in a very compelling way."
Disney's move underscores the growing importance of gaming as a form of entertainment, particularly among younger demographics. The $1.5 billion investment signals Disney's commitment to tapping into the vast potential of the gaming market and meeting the evolving preferences of its audience. Following the announcement, Disney's stock experienced a notable surge, reflecting investor optimism about the company's strategic expansion into the gaming sector.