Disney is investing $1.5 billion in Fortnite-maker Epic Games for a small equity stake, marking the company’s biggest entry into the world of video games, CEO Bob Iger said.
With this investment, Disney plans to launch a new ‘games and entertainment universe’ that integrates the entertainment conglomerate’s storytelling into Epic’s popular game Fortnite, enabling consumers to play, watch, create and shop for both digital and physical goods, Iger said during the company’s earnings conference call.
Iger believes this deal will enable them to attract younger audiences who are huge consumers of video games and are spending a significant amount of their screen time on playing these games.
“This new universe from Disney and Epic provides us with a tremendous opportunity to not only meet more consumers where they are but to allow more audiences to cultivate a bond with Disney’s iconic brands and franchises including Marvel, Star Wars and much more” he said.
Iger said this universe will allow people to play games that Disney creates, create their own games, interact with one another, and watch content including short form videos. “We may even use the platform to distribute some of our content,” he said.
“Just as we take our IP (intellectual property) from our movies and television and have them expressed in our parks. This is a great way to do it in games” Iger said.
“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,” said Epic Games founder and CEO Tim Sweeney
“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” he said.