SBJ Esports: Can Disney-Epic deal bring in more fans?

I have always been a VR/AR nut, owning both the Meta Quest 2 and 3. As these headsets (including the new Apple Vision Pro) continue to improve in size, tech and processing power, they’ll be able to take people just about anywhere they want to go. There is zero doubt in my mind that sports and esports has a strong future in VR universes.

Disney’s staggering $1.5 billion investment in Epic Games and Fortnite is indicative of an ongoing shift in digital entertainment, highlighting the increasing importance and growth potential of virtual entertainment universes. And down the road, esports stands to benefit.

“This deal shows how [Epic Games] will continue to take Disney IP, like they have in the past, and continue to monetize in gaming,” Amish Shah, co-founder and chief business officer of the Infinite Reality esports organization, told me. “They have done things with Star Wars, Marvel, and other properties, and it’s a counter to what Microsoft did with the Activision Blizzard acquisition.”

Fortnite houses a robust set of world creation tools via its Unreal Engine technology. A number of big names, brands and games have taken advantage of that in the past, including Mr. Beast, Tyler “Ninja” Blevins, the Cowboys-backed GameSquare esports org and Mastercard, Kyle “Bugha” Giersdorf and Rocket League (a game also within the Epic family).

As this move by Disney specifically relates to esports, Shah says there may not be a direct effect in the short term, but the scene could certainly benefit down the road.

“Disney’s investment in Epic Games could usher in a new era of content creation and distribution within the gaming and esports industry,” said Shah. “This could potentially broaden the audience for esports, attracting fans from traditional media and entertainment sectors, and integrating more closely with mainstream pop culture. The collaboration might also leverage Disney’s intellectual property, introducing beloved characters and stories into the gaming world, thus creating unique, engaging content that could captivate a wider demographic.”

Chipotle scored big with the loyal fan base of fighting video games last year through a successful activation during the Evolution Championship Series (Evo). Now Chipotle is back as presenting sponsor of Evo this summer in Las Vegas. But can the brand reproduce the viral reaction it got last year?

Chipotle isn’t the first brand to execute a strong esports activation. Wendy’s found success with Fortnite, and Mastercard has seen results with its integration in League of Legends. 

But Chipotle’s activation found success well outside the video game world itself last year.

Evo and Chipotle gave out a gift card redeemable for an entree to those gamers who won their pool. That gift card emerged as one of the hottest status symbols at Evo — a “prestige item,” said Rick Thiher, GM of Evo. The card itself became part of fighting game culture, something unforeseen by both the event organizer and the brand.

“Fans engaged so organically, hitting up other events in the space that are smaller in prestige, so that by the time you get to the arena, that appreciation for the partnership swelled to where a crowd of thousands cheered for a Chipotle commercial,” said Thiher. “And that is an unsellable connection. I can’t go to a brand and say, ‘Yes, we can achieve this. This is an outcome that I expect to occur.’ But because it was so organic, the response from our consumer base was, ‘One of us! One of us!'”

Organizers aren’t yet ready to share what Chipotle will be giving away for the event in July. But last year’s momentum is already carrying into this year’s metrics, as Evo’s Day 1 registrations saw a 75% year-over-year boost compared to the same period last year.

• Canadian esports franchise Toronto Defiant, owned by OverActive Media, is entering the newly created Overwatch Champions Series for the 2024 season, notes Esports Insider. The team is the first former Overwatch League squad to declare for the new circuit, notes Dot Esports.

• Riot Games “reportedly blocked Evil Geniuses” from selling its franchised spot in the Valorant Championship Series to FlyQuest, reports Dot Esports.

• The North American League of Legends competition (LCS) “secured a partnership” with Pagoda Snacks, notes Esports Insider. For the remainder of the 2024 season, Pagoda “will be integrated into LCS broadcasts through a ‘Let Him Cook’ segment that spotlights plays and moments of the day.”