They need someone like a Disney to amplify what they are good at and to bring an audience to their products.” “When the market starts to mature, that's where it becomes much more interesting for us. “We don't do particularly well when the market rewards start-ups to spend a lot of cash to grow top line and market share without growing profit,” he said at the games conference. Partnerships also enable Disney employees to delegate basic tasks and focus on bigger issues, such as devising novel forms of gaming, Heatherly said. Hipster Whale, the Australian gaming start-up behind Crossy Road, partnered with Disney to infuse the game with Mickey Mouse, Buzz Lightyear and other characters that could draw more consumers to a game that’s already seen 120 million downloads.ĭisney gets a new source of revenue in exchange for licensing its characters and pitching the game to customers. The companies usually have a game they think users like, but short on cash, they require a marketing push from someone like Disney to spread the word.Ī recent success has been " Disney Crossy Road," a spin on the popular game "Crossy Road," in which players must maneuver an animal across a busy street. In recent months, the game developers have become more likely to come to Disney for help. Venture capital enabled them to spend heavily on advertising to draw consumers to their products. Two to three years ago, video game makers wanted to furnish their own characters and stories, Heatherly said. A flurry of purchases has yet to materialize, but Disney’s co-development efforts highlight an alternate way large companies may be able to take advantage of the new landscape. The cool-down in venture funding has raised the possibility of a buying spree among big tech companies now that target firms might be available at a discount. Games Conference with Michael Metzger of investment bank Houlihan Lokey. The comments came during a discussion last week at the L.A. “As the venture money has dried up and exits have slowed down and valuations have come down, larger game developers that have one or two hits are now open to work with us in co-development,” said Chris Heatherly, senior vice president and general manager at Disney Mobile Games. Why? Up-and-coming companies are losing access to the cash needed to launch games on their own. The entertainment giant is having an easier time finding partners with whom it can develop mobile games, one of its top executives said last week. A slowdown in tech start-up funding has at least one big beneficiary: Walt Disney Co.’s video games division.
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