Disney Invests $1.4 Billion in Epic Games Amid Layoffs

Disney and Epic Games have both reduced their workload leading up to 2024, but that didn’t stop them from investing over a billion dollars in a collaboration for a brand new meta-verse.

Disney and Epic Games Collaboration Unveiled

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Disney and Epic Games have announced a groundbreaking collaboration to create an unprecedented gaming universe.

Disney’s $1.5 Billion Investment

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As part of this venture, Disney is injecting $1.5 billion into Epic Games, securing an equity stake in the project.

Disney’s Prior Metaverse Efforts

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Despite laying off its dedicated metaverse division last year, Disney is reentering the metaverse space with this collaboration.

Metaverse-Like Project Teased

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Details about the metaverse-like project remain vague, but the collaboration aims to develop an “expansive and open games and entertainment universe.”

Unreal Engine to Power the Experience

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The new universe will be powered by Unreal Engine, Epic’s renowned gaming engine that developed the hugely popular game Fortnite.

350 Million Players

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Fortnite is Epic Games’ leading creation and one of the world’s leading games, with over 350 million accounts worldwide.

Diverse Entertainment Opportunities

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Disney envisions the project as “a world-class games experience and interoperating with Fortnite.”

Disney Chief Shows Excitement

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Disney Chief Executive Bob Iger said the deal would be the “biggest entry ever into the world of games and offers significant opportunities for growth and expansion.”

Variety of Opportunities for Fans

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Other opportunities for fans include “playing, watching, shopping, and engaging with content.”

Inclusion of Iconic Disney Properties

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The universe will feature content from Disney’s vast portfolio, including franchises like Pixar, Marvel, Star Wars, Avatar, and more.

Disney’s Profit Rise

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After a tricky three months of increased pressure to cut costs, Disney saw a rise in profits that enabled them to invest in such a high-profile collaboration.

User-Creation and Interaction

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Players and fans will have the ability to craft their own stories, express their fandom in a distinct Disney manner, and share content within the community.

Epic’s Previous Lego Collaboration

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Epic’s earlier partnership with Lego resulted in the successful launch of Lego Fortnite, which was a hit among fans.

Epic CEO’s Statement

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Epic’s CEO Tim Sweeney said, “Disney was one of the first companies to believe in the potential of bringing their worlds together with ours in Fortnite.”

Rich History of Disney-Fortnite Collaborations

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Some of Disney’s franchises, such as their original star characters, along with Star Wars and Marvel, have previously featured in Fortnite, showing a tight relationship between the companies.

Fortnite’s Evolution Beyond Battle Royale

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Fortnite has evolved beyond its battle royale origins, transforming into a platform that hosts various games and experiences, such as Fortnite Festival and Rocket Racing.

Bringing Together Communities

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Sweeney also believes the collaboration will create an “interoperable ecosystem that will bring together the Disney and Fortnite communities.”

Epic’s Workforce Offload

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Disney was not the only company in this collaboration to make job cuts leading up to the investment, as Epic Games laid off 16% of its workforce in September 2023.

The Future of Fortnite

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Although the details of the new meta-universe haven’t been fully released, both Disney and Fortnite fans can now look forward to a completely new way of gaming.

The post Disney Invests $1.4 Billion in Epic Games Amid Layoffs first appeared on Swift Feed.

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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.

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