In a strategic move, Disney is set to invest $1.5 billion in Epic Games, the powerhouse behind Unreal Engine and Fortnite. The collaboration aims to establish a vast and open games and entertainment universe" (metaverse) blending Disney's iconic brands and IP with immersive experiences provided by Epic Games.

Disney CEO Robert Iger confirmed details of the investment during a recent analyst call with CNBC. While Disney dissolved its metaverse division earlier in 2023, the company's latest move with Epic Games indicates a continued interest in creating immersive experiences in virtual spaces.

"This new universe from Disney and Epic provides us with a tremendous opportunity to not only meet more consumers where they are but also to allow more audiences to cultivate a bond with Disney’s iconic brands and franchises."

This marks Disney’s biggest entry ever into the world of video games and offers significant opportunities for growth and expansion for both parties. 

“It’s not just our parks where we’re creating new opportunities for consumers to engage with the characters and franchises they love. In our new relationship with Epic Games, we’re creating a transformational games and entertainment universe that integrates Disney’s world-class storytelling into Epic’s cultural phenomenon Fortnite, enabling consumers to play, watch, create, and shop for both digital and physical goods," Iger said in the analyst call with CNBC.

Diverse Content

Despite dissolving its metaverse division last year, Disney is embracing a new era of immersive experiences. Iger highlighted that the collaboration with Epic Games represents Disney's "biggest entry ever into the world of video games," promising significant opportunities for growth and expansion.

The gaming and entertainment universe will feature characters from Disney, Pixar, Marvel, Star Wars, Avatar, and more. Fans will have the chance to play, watch, shop, and engage with content in groundbreaking ways. The teaser of the partnership on YouTube has already created buzz, showcasing the potential of this collaboration.

While the partnership is poised to reshape the gaming landscape, there are hurdles to overcome. The deal must pass customary closing conditions and receive regulatory approvals before it can move forward. However, both Disney and Epic Games express optimism about the potential of this collaboration, setting the stage for a groundbreaking gaming and entertainment universe that merges the magic of Disney with the innovation of Epic Games.