Disney and Epic Games: A Powerful Partnership in Entertainment

A pirate’s face deteriorates from flesh to skull as he grasps a handful of cursed gold. Meanwhile, Han Solo’s Millennium Falcon approaches the sand dunes of Tatooine and the skyscrapers of Coruscant. Both scenarios operate with the same software that powers ‘Fortnite,’ the immensely popular online game.

Epic Games’ Unreal Engine has steadily integrated deeper into Walt Disney Co., enhancing multiple facets of entertainment. From the LED soundstages used for ‘The Mandalorian,’ to previsualization tools for Imagineering ride designs, and even extending into ride vehicles and a linked online game within ‘Fortnite.’ As Sean Shoptaw, Disney’s Executive Vice President of Games and Digital Entertainment, noted at a media event, this integration marks a pivotal development for Disney.

We’ve spent many years discussing… transforming the incredible experiences in our parks and building connections to that in a truly immersive gaming world.

The latest link between ‘Millennium Falcon: Smugglers Run’ and the ‘Smugglers Gambit’ virtual game exemplifies the growing partnership between Disney and Epic Games. In recent years, Disney has increasingly employed Epic Games’ technology, covering everything from theme park attractions to film and television production.

Disney aims to captivate fans within their favorite story worlds, hoping to maintain engagement amidst fierce competition for attention. ‘Disney does possess extraordinary properties that offer different ways to engage,’ says Jessica Reif Ehrlich, a senior analyst at Bank of America. ‘The goal has always been to create immersive universes that draw consumers in and engage with Disney characters.’

This partnership deepened in 2024, when Disney invested $1.5 billion for a minority stake in Epic Games. This built towards creating a Disney gaming and entertainment realm interoperable with ‘Fortnite.’ Despite layoffs at Epic Games this year, development continues. At that time, then-CEO Bob Iger viewed the partnership as a way to connect with more consumers.

The collaboration’s focus hasn’t altered under current CEO Josh D’Amaro. He managed the partnership previously as parks chief and stressed technology’s importance in his new role. Describing Disney+ as the company’s digital hub, he sees the Epic Games collaboration as an avenue to reach new audiences, particularly younger generations.

A longstanding element of this collaboration is Epic’s Unreal Engine, a 3D graphics tool initially used for gaming but now used across various industries, including automotive and aerospace. Disney utilizes Unreal Engine from film and TV production to rides like Pirates of the Caribbean. A new audio-animatronic pirate, powered by Unreal Engine, exemplifies its use.

Having been upgraded to Unreal Engine 5 in 2021, the technology improved graphics quality and achieved higher photorealism. Hollywood noticed, and shows like ‘The Mandalorian’ adopted it to create virtual interactive sets. These sets, displayed on large LED walls, replaced traditional location shoots.

Outside gaming, Epic Games finds media and entertainment as its largest market. Bill Clifford from Epic Games believes extending intellectual properties into interactive experiences is crucial. ‘Studios now create a significant amount of gaming content, allowing them to extend games into ‘Fortnite,’ theme parks, and theaters,’ he said.

In June, Disneyland introduced a new audio-animatronic in Pirates of the Caribbean. ‘Creating a lifelike presence in front of you is essential,’ said Margaret Kerrison, now a consultant and author, formerly with Disney Imagineering. Such technology fosters guest experiences that are realistic and engaging, encouraging repeat visits.

‘Millennium Falcon: Smugglers Run’ incorporated Unreal Engine since its 2019 opening. It brings Han Solo’s ship to life, dynamically displaying landscapes like Coruscant and Tatooine as riders navigate. Asa Kalama from Disney Imagineering acknowledged, Unreal Engine allows the creation of more dynamic, immersive attractions.

Connecting with the ‘Smugglers Gambit’ game in ‘Fortnite’ can attract park visitors while keeping fans engaged. Linking ride achievements with in-game rewards enhances the experience. Epic’s Clifford highlighted, ‘You can start a story at the theme park and continue it in a game, enabling new types of interactive and immersive experiences.’ These experiences were nearly impossible before, showcasing the future of entertainment.