- Disney and Epic Games are collaborating to build an immersive virtual universe tied to Fortnite
- Disney plans to invest $1.5 billion to acquire an equity stake in Epic Games
- The new universe will integrate Disney, Pixar, Marvel, Star Wars, and Avatar characters and content
- Disney’s metaverse division was previously scaled back, but now it is making a major foray into the gaming world
- Reality Labs, a subsidiary of Meta, recorded a significant operating loss of over $4.6 billion in the fourth quarter of 2023
1. Disney and Epic Games Join Forces for New Virtual Universe
– Disney and Epic Games are teaming up to develop a new immersive virtual universe tied to Fortnite.
– Disney plans to invest $1.5 billion to acquire an equity stake in Epic Games for this multiyear project.
– The forthcoming persistent universe will offer a world-class gaming experience and integrate with Fortnite, as well as provide opportunities for consumers to engage with beloved Disney, Pixar, Marvel, Star Wars, and Avatar characters, stories, and content.
2. Disney’s Shift in Metaverse Efforts
– Last year, Disney disbanded its metaverse division, which was focused on exploring ways to tell interactive stories in new technological formats using Disney’s intellectual property.
– The new collaboration with Epic Games marks Disney’s major foray into the gaming world, with CEO Bob Iger emphasizing significant opportunities for growth and expansion.
3. Epic Games and Disney CEOs’ Statements
– Epic Games CEO Tim Sweeney highlighted the aim to create an interconnected ecosystem that unites the Disney and Fortnite communities through the new metaverse project.
– Disney CEO Bob Iger expressed that this collaboration is Disney’s most significant entry into the gaming world, marking a shift in the company’s strategy.
4. Meta’s Reality Labs Financial Performance
– Meta’s subsidiary, Reality Labs, which focuses on the development of the metaverse, recorded a significant operating loss of over $4.6 billion in the fourth quarter of 2023.
– While Reality Labs reported a loss, it also generated nearly $1.1 billion in revenue during the same period.
– The metaverse has been a topic of intense debate, with industry leaders expressing mixed outlooks on the potential success and impact of the metaverse.
5. Industry Developments and Outlook on the Metaverse
– Other major tech companies, such as Microsoft, have made shifts in their metaverse-related projects, with Microsoft discontinuing its Industrial Metaverse Core team and laying off employees working on the project.
– While some industry leaders have expressed uncertainty or skepticism about the metaverse, the collaboration between Disney and Epic Games signals a significant push towards the development and integration of virtual universes into the entertainment and gaming industry.
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