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
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!