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Posted April 7, 2013 by Jessica Wright in Business
 
 

Disney letting go of LucasArts

Disney letting go of LucasArts
Disney letting go of LucasArts

After a year from acquiring the legendary franchise, Disney announced today that they are planning on closing LucasArts. LucasArts is an entertainment company that Disney took over mainly because they were interested in ‘’star wars’’, which they are now licencing to other developers. This was somewhat shocking to many people especially that Disney insisted on purchasing the franchise and went after it for so long when other companies were bidding on it. This is why many experts found this decision very shocking.

Disney released a statement today explaining, ‘’ After evaluating the games market for so long, we have took the decision to transfer LucasArts to licensing models. This is going to decrease our risk and enable us to create a portfolio that is broader. This is also why we have been laying off workers for a while now and we must say that we’re very proud of the employees who have worked on this program. ’’ Disney has been laying employees for several months now as part of their plan to decrease the budget.

The final fate for the entertainment franchise is not known until now especially with the release of their new star wars game. So far, about 150 employees were fired and it is unknown if they are going to be relocated. Many experts believe that this is going to be a significant loss for Disney especially because star wars is an extremely profitable franchise and is successful all over the world. Star wars has been popular all over the world for years now and is considered to be one of the few gaming legacies left until now. Keep in mind that it isn’t only the game that is available, there are also movies and merchandise that Disney usually making significant profit from.

However, many experts believe that the real issue is Lucas Arts Entertainment Company itself and that all its other games or sources of entertainment aren’t as profitable as star wars. In other words, Disney can’t just continue spending money on an entertainment company because one franchise is successful and twenty others aren’t. Many experts believe that this was a very smart move especially that they’re trying to reduce costs as much as possible. It is unknown who the licensing company is going to be but it is expected that Disney is going to announce that very soon especially after this news has come out already.


Jessica Wright

 
Jessica Wright graduate of Northwestern University getting both Bachelor’s and Master’s Degrees in Broadcast Journalism. Jessica has been Senior Correspondent focusing on the impact of political decisions and office holders. Jessica is our seasoned investigative, political and community-oriented reporter and columnist whose work has won awards locally, statewide and nationally. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club.