The Walt Disney Company (DIS), Activision Blizzard, Inc. (ATVI) and a Galaxy Far, Far, Away

Page 1 of 2

Star Wars fans weren’t the only ones over the moon when The Walt Disney Company (NYSE:DIS) acquired Lucasfilm in October, 2012. Investors, already well aware of Disney’s tremendous successes in previous acquisitions, such as Pixar and Marvel, were just as excited. (Yoda and Mickey probably weren’t too upset either.)

The Walt Disney Company (NYSE:DIS)

So far, things are off to a good start. One galactic coup for The Walt Disney Company (NYSE:DIS) was when Kathleen Kennedy, president of Lucasfilm, used a Jedi mind trick and recruited J. J. Abrams to be the director of Episode VII—the next installment in the Star Wars saga. If Abrams’s previous success in revitalizing the Star Trek franchise is any indicator of what he will do with Star Wars than there is a lot to be excited about.

Not to mention, the excitement of seeing the old crew. The rumors of Harrison Ford, Carrie Fisher, and Mark Hamill reprising their roles in the next film seem to have been all but verified—another step in the right direction.

One area of concern though with The Walt Disney Company (NYSE:DIS)’s stewardship of the Star Wars universe is how successful they will be in reviving LucasArts– the Lucasfilm division responsible for gaming. For some time, LucasArts was one of the leading studios in video game development. Recently, though, LucasArts has lost its edge.

This Lightsaber’s a Little Duller

Gamers eagerly awaited last year’s release of Star Wars: The Old Republic, a massive multi-player online, or MMO, game. Following a poor release, though, the game has failed to live up to expectations; consequently, players have chosen against renewing their monthly subscriptions. Although the game’s publisher, Electronic Arts Inc. (NASDAQ:EA) has been reluctant to offer specific numbers, the consensus is that, currently, the game has approximately 500,000 subscribers– quite the disappointment when you consider that Electronic Arts had hoped that The Old Republic would be as successful as the MMO from Activision Blizzard, Inc. (NASDAQ:ATVI): World of Warcraft.

Those were pretty high hopes. With over 9 million subscribers, the World of Warcraft franchise accounted for 61%, 90%, and 89% of Activision Blizzard’s net revenues for the years ended December 31, 2012, 2011, and 2010, respectively.

The Old Republic was not the only misstep. There has been a lot of speculation and enthusiasm about another game from that galaxy far, far away—Star Wars: First Assault. Recently, footage of the game has leaked onto the web and inspired hopes that a release would be imminent, but, as of yet, there has been no announcement of an actual release date. So, for now, the game remains in limbo—another lost opportunity for LucasArts.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!