No, this isn’t a drug-induced hallucination or a twisted cross-media promotional campaign (although it’s certainly good marketing for the American shoe brand). Epic Games launched a cosmetic item called Kicks in Fortnite this November. This new feature allows players to customize their character and choose which shoes to wear. This is why Zuko can now reasonably (and completely legally) wear Nike sneakers in a Battle Royale game.
Fortnite launched Kicks with a limited selection of shoes will be released in two drops. Drop one contains four different pairs of shoes with different prices. The standard white leather Nike sneakers cost 800 V-bucks, while the fancy galaxy-pattern high-top sneakers cost 1,000 V-bucks. (Personally, I think the Chomp Stompers shark slippers look the cutest, and they’re cheaper by 600 V-bucks.)
Kicks are quite pricey as far as in-game items go. Players can get 1,000 V-bucks for $8.99, and they already have criticism of pricing because it’s too expensive. Additionally, Kicks are only compatible with a limited list of Fortnite characters. For example, you can customize the footwear for Satoru Gojo and John Wick, but not for Avatar Aang. That said, there are just enough character and shoe combinations to let people put together some pretty crazy looks.