Disney Was Never Been Able to โDemonstrate Much Skillโ in Game Development
Despite what would seem to be a rocky business partnership with Electronic Arts, Disney has a โgood relationshipโ with the publisher and will continue to license its brands to other video game developers.
Chairman and Disney CEO Bog Iger basically said as much in a recent earningโs call on Tuesday, stating that they were never able to โdemonstrate much skillโ in the video game development department.
โWeโre good at making movies and television shows and theme parks and cruise ships and the like, weโve just never managed to demonstrate much skill on the publishing side of games,โ Iger said, replying to a question about whether the company has any desire to self-publish games.
He isnโt necessarily wrong. The Walt Disney Company has never been able to get a strong footing when it comes to the gaming industry. Throughout its long history, Disney has created and purchased studios and publishers only to later shutter them. This exact thing happened in 2016 when Disney discontinued Disney Infinity and closed down Avalanche Software. Last year, they closed Club Penguin Island and sold Emoji Blitz.
Currently, Disney has a deal with EA who has the rights to make Star Wars games. Their relationship appeared to be in hot water when Star Wars Battlefront II became the centre of attention when it came to their microtransaction system. EA also cancelled two other Star Wars games, one developed by EA Vancouver and another by Visceral Games. In their own earnings call, EA confirmed that Star Wars Jedi: Fallen Order would be out later this year.
Iger didnโt seem too fazed by the EA drama when someone asked him about his thoughts on the video game business and how it will impact Disney going forward.
โWeโre obviously mindful of the size of that business,โ Iger said. โOver the years, as you know, weโve tried our hand at self-publishing, weโve bought companies, weโve sold companies, weโve bought developers, weโve closed developers. And weโve found over the years that we havenโt been particularly good at the self-publishing side, but weโve been great at the licensing side which obviously doesnโt require that much allocation of capital.
โSince weโre allocating capital in other directions โฆ weโve just decided that the best place for us to be in that space is licensing and not publishing. Weโve had good relationships with some of those weโre licensing to, notably EA and the relationship on the Star Wars properties, and weโre probably going to stay on that side of the business and put our capital elsewhere.โ
So there we have it. It seems like Disney and EA like each other, and the former would rather license its IP to other studios instead of publishing themselves.
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