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Disney Invests Into Epic Games

By February 14, 2024Gaming, News3 min read

A major entertainment outlet is making its way into the gaming industry following another massive year of growth in the space.

The Walt Disney Company announced a partnership with Epic Games last week on Feb. 7 to create an “all-new game and entertainment universe,” according to an article from Disney. Disney also made a $1.5 billion investment in Epic Games, acquiring a minority stake. However, the exact amount of equity was not disclosed.

The new universe is promised to cross-over with Fortnite as well as offer new experiences in some of Disney’s most popular franchises including Pixar, Star Wars, Marvel and more. There will also be ways for gamers to create their own stories and adventures.

Continuing the Trend

This announcement comes after multiple other large media companies made big moves into the gaming sphere in recent years, such as Netflix. Since beginning the push in 2021, Netflix has introduced gamer tags and a cloud-streaming service that allows you to play Netflix games on the television or the web.

Netflix saw a loss of over 1 million subscribers in 2022, eventually recuperating with the addition of a cheaper subscription with advertisements. Disney + has also been losing subscribers post pandemic. These losses show that Disney, Netflix and some of the other large streamers are not immune to changing markets and demographics. It is time for media companies to invest in gaming.

Other big names like Apple and Google have also been trying to break into the gaming space. Apple launched Apple Arcade in September 2019 and Google launched Stadia shortly after in November 2019, which has since shut down. The New York Times has also been putting more resources into its gaming branch with the purchase of Wordle in 2022.

The Growing Gaming Industry

Gaming is a highly interactive medium. Consumers can engage with content in perpetuity so long as the studio continually supports the game. This differs from traditional streaming products like shows and movies. Gaming also gives more opportunity for consumers to spend money on skins, collectables and new content.

The gaming market is growing too fast for media companies to ignore. Since 2015, the number of gamers has risen from 2 billion to 3.3 billion. The video game sector is expected to be worth $312 billion by 2027 according to PwC.

Ironically, there have been major staff cuts at some of the largest video game studios. Riot Games, the makers of League of Legends, just announced that they are letting go of 11 percent of their staff citing a loss of focus within the company. Microsoft owned Activision Blizzard also just layed off 1900 employees.

More money being invested in the gaming market means better products and more jobs. More people will get into gaming thanks to media giants like Disney and Netflix, continuing to grow the industry.

The gaming market is worth more than ever and will continue to grow. Big media companies entering the space both confirms this and foreshadows a new corporate age for gaming.