Epic Games Bets on Disney Partnership to Revive Fortnite

Layoffs and failed game launches prompt Epic to focus on new Disney-branded titles

Apr. 13, 2026 at 6:36pm

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A highly detailed, glowing 3D macro illustration of a futuristic game controller or other gaming hardware, illuminated by vibrant neon lights, conceptually representing the technological innovation and digital infrastructure powering Epic Games' efforts to revive its Fortnite franchise through a partnership with Disney.Epic Games seeks to reignite the magic of Fortnite through a bold new partnership with Disney, blending cutting-edge gaming technology with beloved characters and franchises.Cary Today

Epic Games, the company behind the hit game Fortnite, has faced challenges in recent years with many new game launches and Fortnite updates failing to resonate with players. The company laid off 1,000 employees last month as part of a $500 million cost-saving effort. Epic is now pinning its hopes for a resurgence on a new partnership with Disney, which invested $1.5 billion in the company two years ago. The first game in the Disney collaboration is set to launch in November and will feature Disney characters in a shooting game similar to Arc Raiders.

Why it matters

Epic Games was once considered one of the most respected and successful video game companies, thanks to the massive success of Fortnite. However, the company's struggles to consistently deliver engaging new content and products have raised concerns about its long-term viability. The Disney partnership represents a critical opportunity for Epic to regain its footing and leverage the power of Disney's iconic characters and franchises to reinvigorate its flagship title Fortnite and launch new successful games.

The details

Epic Games laid off 1,000 employees last month as part of a $500 million cost-saving effort. The company acknowledged that many of its new games and Fortnite updates had failed to resonate with players. Epic is now focusing its efforts on a new partnership with Disney, which invested $1.5 billion in the company two years ago. The first game in this collaboration is set to launch in November and will feature Disney characters in a shooting game similar to Arc Raiders. Early internal reviews have expressed concerns that the game mechanics are not very original, but Epic is hoping to refine the experience before launch. The Disney deal will result in at least two more games, though early versions of the second title have received mixed internal reviews.

  • Epic Games laid off 1,000 employees last month as part of a $500 million cost-saving effort.
  • The first game in Epic's Disney collaboration is set to launch in November 2026.
  • Epic's mobile app store, launched in 2024, has reached 50 million installs, half of what the company had hoped to achieve by the end of 2024.

The players

Tim Sweeney

Founder and Chief Executive Officer of Epic Games.

Dan Vogel

Chief Operating Officer of Epic Games, who was deeply involved in the company's ambitious timelines and product development.

Josh D'Amaro

The new CEO of Disney, who spearheaded the deal with Epic Games.

Liz Markman

The senior director of global communications at Epic Games.

Walt Disney Co.

The entertainment conglomerate that invested $1.5 billion in Epic Games two years ago and is collaborating on new games.

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What they’re saying

“Despite Fortnite remaining one of the most successful games in the world, we've had challenges delivering consistent Fortnite magic with every season.”

— Tim Sweeney, Founder and Chief Executive Officer, Epic Games

“Epic's timelines are aggressive and always have been. We've heavily moved developers onto projects with releases approaching, while smaller prototyping teams are working on further-off projects.”

— Liz Markman, Senior Director of Global Communications, Epic Games

“We remain focused on our long-term collaboration with Epic which continues to have strong momentum and our work to build a transformational games and entertainment universe remains unchanged.”

— Disney Spokesperson

What’s next

Epic Games is set to launch the first game in its Disney partnership in November 2026. The company is also working on at least two more games as part of the collaboration, though early versions of the second title have received mixed internal reviews.

The takeaway

Epic Games' struggles with new game launches and Fortnite updates have prompted the company to heavily focus on its partnership with Disney as a path to reviving its fortunes. The success of these Disney-branded titles will be critical in determining Epic's long-term trajectory in the video game industry.