(Reuters) – In 2017, Epic Games was among a handful of companies selected to participate in Walt Disney’s Accelerator incubator program, where the game company’s founder held ambitions of incorporating the entertainment giant’s well-known characters into his digital playground.
Now, Disney is making a much bigger bet that will make this possible.
Disney CEO Bob Iger on Wednesday announced a $1.5 billion investment aimed at letting consumers interact with stories and characters from Disney, Marvel, Pixar and Star Wars, on Epic’s Fortnite, where 100 million players gather each month. It was an acknowledgement of the amount of leisure time Generation Alpha, Generation Z and millennials devote to gaming.
“In terms of their total media screen time on video games, it was stunning to me – equal to what they spend on TV and movies,” Iger said during a call with analysts and investors after reporting quarterly results. “And the conclusion I reached was we have to be there. And we have to be there as soon as we possibly can in a very compelling way.”
Epic CEO Tim Sweeney had long envisioned a Disney’s characters populating Fortnite’s digital playground, according to two former executives.
“Disney was one of the first companies to believe in the potential of bringing their worlds together with ours in Fortnite,” Sweeney said in a statement, adding that Disney uses Epic’s real time, 3D graphics creation tool, Unreal Engine.
Other companies, such as Lego, have similarly forged partnerships with Epic.
Game industry analyst Michael Pachter of Wedbush said Disney has failed multiple times at developing its own games in house. It struggled to make money even on popular titles such as “Disney Infinity,” he said, referring to a game that incorporated an expansive collection of Disney characters, which would come to life in the game’s virtual toy box.
Since it shifted to a licensing business model in 2016, nine Disney game franchises, including Spider-Man and Kingdom Hearts, have generated more than $1 billion in revenue, Disney said.
Pachter called Disney’s investment in Epic Games “a really smart strategic” move that is consistent with the company’s approach of extending brand awareness and protecting the integrity of the brand.
“Disney, I think, is acknowledging … we are really good at brands and exploitation of those brands,” said Pachter. “And Epic is really good at hooking consumers and getting them engaged and having fun.”
(Reporting by Dawn Chmielewski in Los Angeles; Editing by Christopher Cushing)
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
