Disney is joining forces with Epic Games, with a hefty investment of $1.5 billion for an equity stake, to create a digital universe that spans across their popular franchises. The planned gaming universe is marked as Disney’s most significant venture into the world of games yet and will feature characters from popular universes such as Marvel, Star Wars, Pixar, and Avatar.
Powered by the Unreal Engine, the virtual universe will provide a continuous online world where players can interact with Disney’s renowned characters. Previous collaborations between Disney and the Fortnite creator, like the Marvel Nexus War, have successfully drawn in millions of players, indicating that the upcoming project has great potential.
In wake of its recent return, CEO Bob Iger has spearheaded the company’s foray into this nascent tech frontier. Iger, a known advocate for the intersection of art and technology, has previously invested in Genies, a company that creates 3-D avatars for metaverse platforms. The revival of Iger has resulted in a significant surge in Disney’s stock, further uplifted by the recent Epic Games deal announcement.
Despite facing several hurdles, including the impact of the COVID-19 pandemic, the booming streaming television industry, and company-wide cost-reducing measures, Disney’s plans to venture into the metaverse echo the renewed market interest in this space.
As Gartner analyst Marty Resnick notes, the focus on artificial intelligence overshadowed interest in the metaverse in the short term. However, with significant players such as Meta, Apple, and now Disney, investing in the metaverse, the interest in this technology is quickly rebounding. Disney’s latest partnership with Epic Games could be a pivotal moment in the growth of metaverse gaming.