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Disney Invests $1.5 Billion in Epic Games

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Disney and Epic Games have unveiled plans for an “expansive and open games and entertainment universe.” This ambitious venture, backed by a significant $1.5 billion investment from Disney for an equity stake in Epic, aims to redefine the boundaries of virtual engagement and creativity.

This new digital universe promises to offer unprecedented opportunities for users to play, watch, shop, and interact with a rich tapestry of content spanning Disney’s vast portfolio, including Pixar, Marvel, Star Wars, Avatar, and more.

Leveraging the power of Unreal Engine, this platform is set to empower players and fans to craft their narratives, celebrate their fandom in uniquely Disney ways, and share their creations in a community-driven environment.

This partnership echoes Epic’s recent collaboration with Lego, which saw a $2 billion investment from Sony and KIRKBI, leading to the launch of the survival game Lego Fortnite. This move marked a significant pivot for Fortnite, expanding its horizon beyond its battle royale origins to host a variety of games and experiences, including the music-centric Fortnite Festival and Rocket Racing. The upcoming Disney-Epic universe seems to build on this foundation, aiming to create a more interconnected and expansive digital experience.

Disney and Fortnite have a rich history of collaboration, with numerous characters from Star Wars, Marvel, and other Disney franchises making appearances in the game. Notably, 2020 saw an entire Marvel-themed season in Fortnite, showcasing the potential of these partnerships to engage fans in new and immersive ways.

The announcement comes at a time when both companies have faced challenges within the metaverse space, with Disney scaling back its efforts and Epic recently reducing its workforce. However, this new venture signals a renewed commitment to exploring the possibilities of digital worlds, with Disney CEO Bob Iger expressing excitement for the “significant opportunities for growth and expansion” this collaboration brings.

Epic’s Tim Sweeney echoed this sentiment, highlighting the goal to create a “persistent, open, and interoperable ecosystem” that unites the Disney and Fortnite communities.

While details on the launch of this metaverse remain under wraps, the collaboration has already sparked interest with the announcement of a Mandalorian-themed update for Rocket League, featuring a Grogu car topper.

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