Research Summary
The report discusses Disney’s $1.5B investment in Epic Games, marking its largest foray into the gaming industry. It explores Disney’s history with gaming, the potential of the Disney-Epic partnership, and the implications of the investment. The report also reviews the mobile game Command & Conquer: Legions.
Key Takeaways
Disney’s History in Gaming
- Disney’s Gaming Journey: Disney has a long history with gaming, starting with Walt Disney Computer Software in 1988. The company has alternated between internal development and licensing business models, with cumulative investments likely in the double-digit billions. Disney’s gaming ventures have included everything from AAA action platformers to casual mobile games.
Disney-Epic Partnership
- Collaboration Details: The specifics of the Disney-Epic partnership are not yet clear, but it is expected to involve a Disneyland-like digital experience within Fortnite. This collaboration allows Epic to add more premium content to Fortnite, while Disney can venture into the metaverse without the risks and costs of development.
Significance of Disney’s Investment
- Investment Impact: Disney’s $1.5B investment in Epic Games, made at a $22.5B valuation, gives Disney a 9% stake in Epic. This significant stake suggests a long-term partnership between the two companies. The investment also indirectly supports Epic’s challenge to Apple and Google’s platform duopoly, given Disney’s own mobile ambitions.
Command & Conquer: Legions Review
- Game Review: The report reviews the mobile game Command & Conquer: Legions, developed by YoRha Studios. The game, currently in soft launch, is a 4X game that uses EA’s Command & Conquer IP. However, it has been criticized for failing to capture the essence of the original IP and for its tone-deaf marketing.
Investment Support Services
- Naavik’s Services: Naavik offers market and investment research, due diligence, and advisory support services. The company has supported several investment firms in and around the gaming industry.
Actionable Insights
- Monitor the Disney-Epic Partnership: Stakeholders should keep a close eye on the Disney-Epic partnership, as it could significantly impact the gaming and entertainment industries. The collaboration’s success could influence future investments and partnerships in the gaming industry.
- Assess the Impact of Disney’s Investment: The implications of Disney’s investment in Epic Games should be evaluated, particularly its potential to challenge the platform duopoly of Apple and Google. This could have significant implications for the mobile gaming market.
- Consider the Importance of IP Integration: The review of Command & Conquer: Legions highlights the importance of respectful and effective integration of IP in games. Developers and investors should consider this when evaluating potential projects or investments.
