Disney announced on Wednesday that it is investing $1.5 billion in Epic Games, the developer of the popular online game Fortnite, and that it will collaborate with the gaming studio on creating new games and an entertainment universe that will feature Disney’s franchises and characters. The deal is Disney’s biggest foray into the gaming industry, and aims to leverage the power and popularity of Fortnite, which has over 400 million players worldwide, and Epic’s Unreal Engine, which is a leading platform for creating and running 3D content.
The deal’s objectives are to:
- Expand Disney’s reach and engagement with new and existing audiences, especially the younger and more tech-savvy generations, who spend more time and money on gaming and online platforms
- Enhance Disney’s creativity and innovation, by tapping into Epic’s expertise and technology, and by exploring new ways of storytelling and interactivity
- Generate new revenue streams and growth opportunities, by creating and monetizing new games and entertainment products and services, and by cross-promoting and integrating Disney’s existing content and businesses
The plan and its features
The plan is to create a new games and entertainment universe, which will be called Disneyverse, and which will be connected and interoperable with Fortnite. The plan’s features are:
- Disneyverse will be a persistent, open, and immersive world, where players and fans can play, watch, shop, and interact with content, characters, and stories from Disney, Pixar, Marvel, Star Wars, Avatar, and more
- Disneyverse will offer a variety of games and entertainment experiences, such as action, adventure, role-playing, simulation, puzzle, music, and sports, as well as live events, shows, and concerts
- Disneyverse will allow players and fans to create and customize their own avatars, outfits, accessories, and items, using Disney’s intellectual property and Epic’s tools and assets
- Disneyverse will support multiple devices and platforms, such as PCs, consoles, mobiles, tablets, VR, and AR, and will use cloud and streaming technologies to ensure high-quality and seamless performance
The challenges and the opportunities of the deal
The deal is ambitious and exciting, but it also poses some challenges and opportunities for Disney and Epic, such as:
- Balancing the creative and commercial aspects of the deal, by ensuring that the games and entertainment products and services are appealing and accessible to a wide and diverse audience, and that they are profitable and sustainable for both parties
- Collaborating and competing with other players and platforms in the gaming and entertainment industry, by creating and maintaining a competitive edge and a loyal fan base, and by forming and managing strategic partnerships and alliances
- Adapting and evolving the deal, based on the feedback and preferences of the players and fans, and by incorporating the latest trends and developments in the gaming and entertainment industry
The deal is a vision and a mission of Disney’s CEO Bob Iger and Epic’s founder and CEO Tim Sweeney, who have both expressed their enthusiasm and confidence in the deal. They hope to share their love and passion for gaming and entertainment with more people, and to create a new and unique games and entertainment universe that will delight and inspire them.
