Disney has changed dramatically since Michael Eisner stepped down as CEO in 2005. The company owns more major franchises, operates more entertainment businesses, and reaches audiences through platforms that barely existed during much of his tenure.
Yet Eisner believes one mistake made by Disney and the rest of Hollywood decades ago offers an important lesson for entertainment companies today.
The former Disney CEO recently discussed Hollywood’s rocky relationship with video games, admitting that traditional media companies didn’t understand the business particularly well.
“We all failed,” Eisner said.
Nearly 21 years after his Disney departure, however, the most interesting part isn’t simply what went wrong. It’s Eisner’s warning about what could go wrong next.
Hollywood Couldn’t Figure Out Video Games
Disney’s characters have appeared in video games for decades, but Hollywood’s relationship with gaming wasn’t always easy.
Eisner explained that early video games relied heavily on something traditional entertainment executives didn’t necessarily understand: technology.
Gaming “was so technologically driven in the beginning, which was not the strong suit of any of us,” he said.
Eisner pointed toward Warner Bros.‘ experience with Atari as one example of Hollywood’s difficulties.
For Disney and other entertainment companies, the eventual solution was licensing.
“We all failed,” Eisner said. “We ended up licensing. That’s how we succeeded.”
Instead of attempting to master every part of video game development internally, entertainment companies could hand their intellectual property to businesses that already understood the medium.
It worked.
But Eisner believes gaming has since evolved in a way that gives companies like Disney a completely different advantage.
Gaming Has Moved Into Disney’s Territory
Technology remains essential to video games, of course, but Eisner believes recognizable stories and characters have become much more valuable.
“Now it’s story-driven,” Eisner said. “Now it is IP-driven.”
Few entertainment companies can compete with Disney on that front.
Disney doesn’t simply have Mickey Mouse, its princesses, and decades of animated characters. Acquisitions have given the company Pixar, Marvel, Lucasfilm, and their respective libraries.
That collection gives Disney opportunities across practically every entertainment platform imaginable.
“We all take the IP that we made and put it in a place where you can enjoy it,” Eisner explained.
Disney fans see that strategy constantly.
A character can begin on a movie screen before appearing on Disney+, inside a theme park attraction, on merchandise, and in video games.
However, Eisner doesn’t believe companies can depend on that formula forever.
Disney Eventually Has To Create Something New
“At a certain point in your life, you have to make the IP the new IP,” Eisner said.
It’s a simple statement that addresses one of the biggest challenges facing Disney today.
The company possesses an almost unmatched library of recognizable entertainment properties. Those franchises give Disney a built-in audience whenever it announces another project.
But where does the next major franchise come from?
Eisner’s own philosophy changed considerably throughout his career.
“I never believed in sequels,” he admitted, explaining that his earlier approach was “everything’s going to be original.”
Disney’s animation division delivered several enormous original successes during his tenure.
The Little Mermaid (1989), Beauty and the Beast (1991), Aladdin (1992), and The Lion King (1994) became defining movies for an entire generation.
More importantly, Disney didn’t inherit those movies as established film franchises. Their success allowed Disney to build franchises around them afterward.
That distinction matters when looking at the modern company.
Eisner Praises Disney’s Star Wars Purchase
Eisner left Disney years before the company purchased Lucasfilm, but he believes acquiring Star Wars proved to be an excellent decision.
“We had nothing in the last 20 years, so we bought Star Wars from George Lucas and that worked,” Eisner said.
His timeline wasn’t literal. Disney also made massive acquisitions involving Pixar and Marvel during the years after his departure.
Eisner’s larger argument involved the loyalty surrounding established intellectual property.
Star Wars came with generations of fans who already cared deeply about its characters and universe.
“They are so committed to the IP that I realize that there are certain kinds of things that are worth doing,” Eisner explained.
Buying a franchise with that kind of following can give an entertainment company something incredibly difficult to manufacture from scratch: immediate attention.
But that advantage can also become a trap.
Did Disney Push Star Wars Too Far?
Eisner warned that companies risk exhausting audiences if they repeatedly return to the same franchises.
He even questioned Disney’s handling of Star Wars, suggesting the company may have “overstepped its bounds” with too many sequels.
That doesn’t mean Eisner believes established franchises have lost their value.
He described franchise licensing as “a great way to get in.” His concern appears to be what happens afterward.
“The key is after you have five or six IPs, you make a great game that nobody’s ever heard of,” Eisner said. “It’ll be a giant game. But it’s going to take a while.”
The risk involved is obvious.
A new Star Wars or Marvel project starts with enormous name recognition. Something completely original has to convince audiences to care.
Yet Eisner believes taking that risk remains necessary.
Disney Solved One Problem and Created Another
That’s where Eisner’s admission about Hollywood’s failure becomes especially relevant to Disney in 2026.
Decades ago, entertainment companies possessed valuable characters but struggled to understand how to bring them into gaming. Licensing offered a solution.
Today, Disney knows exactly how valuable its intellectual property can be.
The company can extend a successful property across movies, streaming, games, merchandise, and theme parks.
The problem is determining when enough becomes enough.
Disney needs Marvel, Star Wars, Pixar, and its classic animated properties. Those franchises remain major parts of the company’s identity.
But Eisner’s comments point toward the other side of that strategy.
Eventually, someone has to create the story that doesn’t already have decades of history behind it.
Disney’s gaming failure belonged to a very different era. The larger issue Eisner identified, though, remains unresolved: successful entertainment companies can’t simply preserve and extend yesterday’s biggest ideas forever.
At some point, they have to create tomorrow’s.
