Disney Extraction Shooter Reportedly in Development at Epic Games

Fortnite developer Epic Games is reportedly working on a new extraction shooter featuring Disney characters that is set to launch later this year.

A Bloomberg report states the currently unnamed spinoff is expected to launch November 2026. It, as well as the other two unnamed titles, is said to be the result of a $1.5 billion investment Disney made in the gaming giant back in 2024.

According to the site’s sources, the mystery extraction experience is said to be a shooting game not unlike Embark Studios’ Arc Raiders, which launched to impressive player numbers and wound up a massive success for the developer late last year. Those familiar with the Disney game say some at Epic are optimistic the project will stick the landing at launch, though internal reviews have expressed concern about unoriginal game mechanics.

Disney has had plenty of its characters crossover to the main Fortnite experience in the years since its investment was announced, with two recent examples seeing Buzz Lightyear and Emperor Zurg joining its enormous roster of skins. Last month, Epic gave players the ability to create their own experiences based on Star Wars. The game has also featured numerous crossovers with the Marvel universe in the past.

It’s unclear which characters from Disney’s wide catalog of IP it plans to let loose in a new extraction shooter from Epic. Further details on the two entertainment companies’ continued partnership are even murkier, as Bloomberg reports the plan is to eventually see at least a second and third game materialize in the future. There’s no word on what shape each will take, as the site’s sources paint a picture of average internal reviews for game number two, while resources for game three have been reallocated to the others.

Bloomberg reports Disney was “disappointed” with the game developer’s progress on the other projects, which drove the decision to shift resources around. Epic senior director of global communications Liz Markman told the site its reporting is “not reflective of the ambitions of the Disney collaboration,” adding, “We are building a new games and entertainment universe of Disney experiences.”

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

A representative for Disney also provided the site with a statement, saying that it remains “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.”

News of Disney’s alleged plans with Epic follow the announcement that the Fortnite maker had laid off 1,000 employees just weeks ago. A message shared by the company pointed to a “downturn in engagement” at the time, while also saying it was “spending significantly more than we’re making.” A separate announcement confirmed plans to shutter its Rocket Racing, Ballistic, and Festival Battle Stage experiences in the near future. Remaining employees took to social media in the wake of the news to speak about what was next for the team.

We spoke with industry analysts in the aftermath of the layoffs to learn more about what may be troubling the studio. Meanwhile, tech reporter Alex Heath shared on The Town podcast late last month that Disney was allegedly interested in acquiring Epic at some point.

Michael Cripe is a freelance writer with IGN. He’s best known for his work at sites like The Pitch, The Escapist, and OnlySP. Be sure to give him a follow on Bluesky (@mikecripe.bsky.social) and Twitter (@MikeCripe).