We might not be using the M word much these days, but the race to create an interconnected avatar-driven virtual world didn’t take the last year off.
The metaverse, a term in tech sandwiched between the hype of NFTs and AI, is still being developed, regardless of what we’re calling it. Given recent news, one company is increasingly positioned to dominate the near future.
Epic Games and Disney announced on Wednesday that they are collaborating to create an “entertainment universe” filled with Disney-themed games and merchandise. The multiyear project will utilize Epic’s technology and Fortnite’s social gaming ecosystem to bring Disney’s characters to life. Disney made a $1.5 billion investment in Epic as part of the deal.
In an image promoting the project, Disney and Epic depict their work as a series of futuristic colorful islands floating in space, connected by highways, with a Magic Castle glowing in the center. These highways, whether literal or symbolic, will link with Epic’s Fortnite — a game that has evolved into a massive online social ecosystem.
Evolution of Fortnite
Fortnite is widely known as a third-person shooter game where 100 players compete on a shrinking virtual island. The game is popular for its playful extravagance and encourages players to personalize their avatars with custom “skins,” obtained through playing or purchasing from Epic’s virtual store. In Fortnite, players can, for example, embody characters like Darth Vader, Goku from Dragon Ball Z, or Ariana Grande, engaging in whimsical activities such as rolling over enemies in a giant hamster wheel. In 2023, the game experienced a resurgence with 100 million people logging in last November.
Fortnite has evolved into more than a game and has expanded into a platform or marketplace, evident in its seasonal events, virtual concerts, and user-generated sandbox worlds. The recent surprise collaboration with Disney signifies a new level of ambition. Disney, which initially invested in Epic in 2017 and licensed Marvel and Star Wars characters to Fortnite as skins, is now making a deeper and long-term investment of $1.5 billion.
Disney’s Interest in Fortnite
Disney is in a unique position of requiring something that it probably couldn’t accomplish better on its own with Fortnite. Epic Games is ahead of many others in providing seamless online multiplayer gaming experiences, demonstrated through Fortnite’s smooth, fast, and detailed virtual worlds. The partnership with Disney also benefits Fortnite by potentially expanding its player base beyond its current demographic and introducing more women and family-oriented content. Fortnite’s business model, which relies on brand licensing partnerships and in-game purchases, presents significant revenue potential for both companies through Disney-owned character skins such as Star Wars and Marvel.
The State of the Metaverse
While Meta, previously known as Facebook, has focused on VR hardware, other companies like Epic, Roblox, and Mojang have developed avatar-driven virtual worlds that are widely available and hardware agnostic. These social gaming worlds are highly engaging, allowing players to express themselves through virtual purchases. Fortnite, in particular, offers unique advantages with its high-fidelity graphics, sophisticated animations, and a deep understanding of online self-expression, positioning it well to introduce a broader audience to the metaverse.
As the Fortnite universe expands to include collaborations with Lego, Rock Band, and now Disney, Epic is set to introduce a large number of players to a virtual world that’s as much about socializing as the activities offered — fulfilling the promise of the metaverse.
