Disney built some of the world’s most valuable entertainment franchises, but one former CEO admits the company initially had little idea how to translate them into video games.

Eisner Reflects on Disney’s Early Gaming Era

Former Disney CEO Michael Eisner says Hollywood’s eventual success in video games came only after media companies like Disney recognized their limitations and licensed their characters to experienced developers.

Eisner discussed Disney and the wider entertainment industry’s complicated history with gaming during “Sports in the Gaming Era,” a July 16 panel presented by the Paley Center for Media in New York City. The former Disney chairman and CEO appeared alongside Delphi Interactive founder and CEO Casper Daugaard and OpenAI senior advisor Moritz Baier-Lentz.

The panel explored the growing value of established intellectual property in gaming, including Delphi Interactive’s work with the James Bond and FIFA brands. Eisner used the discussion to reflect candidly on his experience with early attempts to develop games: “We all failed. We ended up licensing. That’s how we succeeded.”

According to Eisner, the central issue for entertainment companies was not a lack of recognizable characters or storytelling experience. What they lacked was the technical expertise in the still-developing medium of video games.

“Warner Brothers started it all with Atari in 1983. They went under,” Eisner said. Warner Communications sold Atari in 1984 following major financial losses. Nintendo helped restore confidence in the home console market with the 1985 release of Super Mario Bros.

Gaming “was so technologically driven in the beginning, which was not the strong suit of any of us,” according to Eisner. “Now it’s story-driven. Now it is IP-driven.”

The former CEO believes that balance has since shifted. Advancing technology remains essential, but major video games are now increasingly sold through their characters, settings, and stories.

One of the strongest and earliest examples of Disney’s licensing strategy was Kingdom Hearts, the Square Enix role-playing franchise that combines Disney worlds and characters with elements associated with the Final Fantasy series.

The original game arrived on PlayStation 2 in 2002, during Eisner’s tenure, after an unconventional crossover proposal reportedly required his approval during a trip to Tokyo – a fateful meeting which Eisner has little memory of.

A Brief History of Disney’s Video Game Business

Disney’s first major foray into the video game space began with the creation of Walt Disney Computer Software in 1988. A games publishing arm, Disney Interactive, was later established in 1994 and continues to operate today as Disney Electronic Content.

The division licenses properties to other publishers while also developing and publishing games through third-party studios. Essentially all Disney video games stem from development or licensing arrangements managed by Disney Electronic Content, with releases ranging from Kingdom Hearts to the ambitious toys-to-life series Disney Infinity to the ongoing development of today’s Dreamlight Valley.

Following the cancellation of Disney Infinity in 2016, Disney closed its self-published console gaming operation and returned to a licensing-focused strategy, allowing companies such as Square Enix, Electronic Arts, Ubisoft, Sony, and Gameloft to develop games based on Disney, Pixar, Marvel, and Star Wars properties.

As such, Disney’s present gaming strategy continues to rely heavily on outside developers. Recent releases include Gameloft’s continually expanding Disney Dreamlight Valley, Dlala Studios’ Disney Illusion Island, Bithell Games’ TRON: Catalyst, Netmarble’s Game of Thrones: Kingsroad, and Marvel Games collaborations such as Marvel Rivals and Marvel Cosmic Invasion. Ubisoft also expanded Star Wars Outlaws with the A Pirate’s Fortune story pack, while Disney properties have remained prominent in crossover games such as Fortnite.

A few games from the upcoming slate of Disney-owned properties include Insomniac Games’ Marvel’s Wolverine, Bit Reactor’s turn-based strategy game Star Wars Zero Company, and Fuse Games’ Star Wars: Galactic Racer.

Together, the projects illustrate the licensing model Eisner described: Disney supplies globally recognizable characters and worlds while established developers handle the technology and game design.

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