Last verified: April 2026. Partnership details and release timelines may change. Financial figures are from Disney and Epic Games disclosures unless noted otherwise.
Disney shut down its internal game studios in 2016. Eight years later, in February 2024, the company invested $1.5 billion in Epic Games to build a persistent entertainment universe inside Fortnite. That bet is now taking shape: a Disney-themed extraction shooter is reportedly targeting a November 2026 launch, and a Disneyland minigame collection is already live in Fortnite. Disney and gaming are intertwined again, this time through someone else’s platform.
Disney’s gaming history: from DuckTales to shutting it all down
Disney’s relationship with video games dates back to 1982, when Tron became one of the company’s first licensed arcade titles. The 1989 NES game DuckTales, developed by Capcom, became a classic and showed that Disney IP could succeed in gaming when paired with talented developers.
Through the 1990s and 2000s, Disney built its own interactive division. Toontown Online (2003) peaked at 1.5 million subscribers. Where’s My Water? (2011) reached 200 million downloads on mobile. Disney Infinity, a toys-to-life platform launched in 2013, combined Disney, Pixar, Marvel, and Star Wars characters into a sandbox game.
The Kingdom Hearts franchise, a collaboration between Disney and Square Enix that began in 2002, produced one of the most successful crossover series in gaming history. The original Kingdom Hearts on PlayStation 2 combined Disney worlds with Square’s RPG mechanics and sold millions of copies, spawning numerous sequels and spin-offs.
Then, in May 2016, Disney shut down Disney Interactive Studios and exited first-party home console game development entirely. Disney Infinity was cancelled. The company’s new strategy was to license its IP to third-party developers: Electronic Arts held the exclusive Star Wars games license from 2013 to 2023, while Square Enix continued Kingdom Hearts.
The $1.5 billion Epic Games investment
On February 7, 2024, Disney announced a $1.5 billion equity investment in Epic Games. The stated goal: build a persistent universe connected to Fortnite where users can play, watch, shop, and interact with characters and stories from Disney, Pixar, Marvel, Star Wars, and Avatar.
The investment valued Epic at $22.5 billion, down from the company’s $31.5 billion peak in 2022. For Disney, $1.5 billion is a measured bet, less than the cost of a single Marvel film production and marketing campaign.
CEO Bob Iger framed the partnership as a way to enter gaming at scale without rebuilding internal studios. Fortnite’s 650 million registered accounts give Disney immediate access to a massive audience. The experience would be powered by Unreal Engine and allow user-generated content built around Disney properties.
What Disney is building inside Fortnite
Two concrete projects have emerged from the partnership so far:
Disneyland Game Rush launched inside Fortnite as a collection of theme park-inspired minigames. It is the first publicly visible product of the $1.5 billion investment, giving players a taste of what the broader Disney universe in Fortnite will look like.
The larger project is a Disney-themed extraction shooter, reportedly targeting a November 2026 release. According to Attractmode, the game will have players controlling various Disney characters in team-based objectives, fighting to reach extraction points. Internal reviewers have raised concerns that the mechanics lack originality, but the project remains in active development.
Two additional titles are reportedly in the pipeline. The second received mixed internal reviews, and resources for a third were reallocated due to timeline issues. Despite Epic’s March 2026 layoffs (over 1,000 employees cut), both Disney and Epic have stated publicly that the partnership remains a priority.
Some Disney executives have reportedly discussed acquiring Epic Games outright, according to journalist Alex Heath. Others inside Disney oppose the idea. No formal acquisition talks have been confirmed, and Epic has not signaled it is for sale.
Disney’s broader gaming licensing strategy
The Epic partnership is Disney’s biggest gaming move, but it is not the only one. Disney licenses its IP across the gaming industry:
| Franchise | Developer/Publisher | Status |
|---|---|---|
| Star Wars (multiple titles) | Various (post-EA exclusivity) | Active (Ubisoft, Respawn, others) |
| Kingdom Hearts | Square Enix | Active (KH4 in development) |
| Marvel games | Various (Insomniac, Crystal Dynamics) | Active |
| Disney mobile games | Various licensees | Active |
| Fortnite universe | Epic Games | In development |
Electronic Arts‘ exclusive Star Wars license ended in 2023, and Disney has since opened the franchise to multiple studios. Ubisoft released Star Wars Outlaws in August 2024. Respawn Entertainment (an EA studio) continues the Jedi series. Insomniac Games (owned by Sony) developed Marvel’s Spider-Man and Marvel’s Spider-Man 2, both commercial and critical successes.
Kingdom Hearts IV is in development at Square Enix, confirmed at a 2022 event. A release date has not been announced.
Why Disney chose Epic over building its own studio
Disney’s 2016 exit from internal game development came after years of losses. Disney Infinity, despite strong sales in its first year, failed to sustain profitability against competitors like Skylanders and Lego Dimensions. The toys-to-life market collapsed industry-wide.
Investing in Epic lets Disney avoid the risk and cost of building a game development operation from scratch. Epic already has the engine (Unreal), the platform (Fortnite), the audience (650 million accounts), and the development expertise. Disney brings the IP, the brand, and the marketing reach.
The model mirrors how Disney operates in other parts of its business. Disney does not manufacture toys; Hasbro and Mattel do. Disney does not build theme parks from scratch in new markets; it partners with local operators. In gaming, Epic fills the same role.
Frequently asked questions
Is Disney making video games again?
Disney does not develop games internally. It invested $1.5 billion in Epic Games in February 2024 to build a Disney entertainment universe inside Fortnite. Disney also licenses its Marvel, Star Wars, and other IP to third-party studios.
What is the Disney Fortnite extraction shooter?
It is a team-based extraction shooter featuring Disney characters, developed by Epic Games as part of the Disney partnership. It reportedly targets a November 2026 release, though this has not been officially confirmed.
Is Disney buying Epic Games?
There is no confirmed acquisition. Reports suggest some Disney executives have discussed acquiring Epic, but others oppose the idea. Disney currently holds an equity stake from its $1.5 billion investment at a $22.5 billion valuation.
What happened to Disney Infinity?
Disney cancelled Disney Infinity in May 2016 and shut down Disney Interactive Studios. The toys-to-life market collapsed as the genre lost profitability. Disney then shifted to a licensing-only model for video games.