This article is also available in:
French
Disney and Epic Games just unveiled a massive collaboration agreement. On one hand, the two giants will collaborate on new video games and an entertainment ecosystem. On the other hand, Disney will invest $1.5 billion to acquire an equity stake in Epic Games.
A virtual theme park?
Disney explains that the core idea is to create a persistent virtual universe, interoperable with the Fortnite game. This virtual universe will offer “a multitude of opportunities for consumers to play, watch, shop and engage with content, characters and stories from Disney, Pixar, Marvel, Star Wars, Avatar and more”, according to the announcement. Hence the slogan “Play Watch Create Shop” plastered in the video accompanying the announcement. You can watch it below.
In summary, the announcement suggests the virtual equivalent of the experience offered in Disney theme parks, with elements related to Fortnite, and others completely independent, targeting an audience ranging from hardcore gamers to fans of Disney franchises.
Conversely, the agreement also includes collaborations around Disney’s theme parks: we can therefore expect new experiences relying on Unreal Engine to be launched.
An announcement… That is not that surprising
This announcement is not necessarily surprising, given the past collaborations between the two groups. Avatars from Disney franchises have been included in Fortnite, for example.
Moreover, Epic has already forged partnerships with other entertainement companies: Lego Fortnite is a good example. This open-world survival game was launched in association with the Lego Group.
A breath of fresh air for Epic Games and Disney?
It is also worth recalling here that a few months ago, Epic Games announced layoffs and the sale of certain parts of the group, such as the music platform BandCamp. The poorly managed finances of Epic Games were the root cause: while the company’s revenues are massive, its expenses were also substantial, with massive investments and lots of acquisitions. Epic Games was in the red.
As for Disney, the company has been in a precarious state since the outbreak of the pandemic in 2020. The giant had recently announced plans to save 7.5 billion dollars annually. Successive budget restrictions have already been able to limit Disney’s deficit, but at the cost of multiple waves of layoffs, which will continue: our latest article on the matter focused on upcoming layoffs at Pixar this year.
In other words, Epic Games and Disney are each facing degraded finances and are obviously hoping to create new sources of revenue here. Will this be a success? The answer will come in the months and years to come.
