Michael Eisner hasn't run Disney in nearly 21 years, but some of the challenges he faced during his time at the company sound surprisingly familiar in 2026.
Eisner served as Disney's CEO from 1984 until 2005, overseeing one of the most transformative periods in the company's history. The Disney Renaissance unfolded during his tenure, the theme park business expanded, and Disney grew into a much larger entertainment company.
But looking back, Eisner doesn't consider everything from that era a success.
During a recent Paley Center for Media discussion, the former Disney CEO acknowledged that Hollywood struggled badly with one emerging form of entertainment: video games. More importantly, his explanation reveals a problem that Disney continues wrestling with decades later.
Eisner Says Hollywood Failed at Gaming
Eisner didn't try to soften his assessment of Hollywood's early attempts to understand video games.
“We all failed,” Eisner said. “We ended up licensing. That's how we succeeded.”
His comments weren't aimed exclusively at Disney. Eisner described a broader problem throughout Hollywood as traditional entertainment companies attempted to move their characters and stories into an industry they didn't fully understand.
Technology presented one of the biggest obstacles.
Gaming “was so technologically driven in the beginning, which was not the strong suit of any of us,” Eisner explained.
Instead of mastering the business internally, entertainment companies increasingly licensed their properties to experienced game developers.
That gave Hollywood a way into gaming without necessarily becoming gaming companies themselves.
Decades later, however, Eisner sees a very different industry.
Disney Now Has Something Gaming Companies Want
Modern video games aren't simply technological showcases. Stories, characters, and recognizable franchises have become enormously important.
That's an environment where Disney should have a natural advantage.
“Now it's story-driven,” Eisner said. “Now it is IP-driven.”
Disney owns some of the most recognizable entertainment properties on the planet. Beyond its classic characters and animation library, the company controls Pixar, Marvel, Lucasfilm, and other valuable brands.
Yet Eisner's comments point toward a difficult balancing act.
“We all take the IP that we made and put it in a place where you can enjoy it,” Eisner said.
That's essentially what Disney does throughout its business. A successful movie can inspire merchandise, streaming content, attractions, games, and sequels.
But Eisner followed that observation with something much more important.
“At a certain point in your life, you have to make the IP the new IP.”
In other words, established franchises can only carry a company so far.
Eisner Once Wanted Everything To Be Original
Eisner's perspective is particularly interesting because he didn't always believe franchises represented Hollywood's future.
“I never believed in sequels,” Eisner admitted.
His philosophy was once that “everything's going to be original.”
Some of Disney's biggest successes during his tenure reflected that approach. The Little Mermaid (1989), Beauty and the Beast (1991), Aladdin (1992), and The Lion King (1994) helped define the Disney Renaissance.
Those movies eventually became valuable Disney franchises themselves.
That's the cycle Eisner appears to believe entertainment companies must continue. Existing properties can provide stability and immediate audience recognition, but companies eventually need to create something capable of becoming the next major franchise.
And that's where his comments become particularly relevant to modern Disney.
Disney Has Become Increasingly Dependent on Familiar Names
Today's Disney has something Eisner's company never possessed: an enormous collection of acquired franchises.
Eisner praised one of the biggest acquisitions that happened after his departure.
We had nothing in the last 20 years, so we bought Star Wars from George Lucas and that worked,” Eisner said.
The statement was exaggerated. Disney acquired Pixar in 2006 and Marvel in 2009 before purchasing Lucasfilm in 2012.
But Eisner's point was about audience loyalty.
“They are so committed to the IP that I realize that there are certain kinds of things that are worth doing,” he said.
Disney has certainly put that idea into practice.
Marvel and Star Wars have expanded across movies, television, streaming, theme parks, merchandise, and gaming. Disney has also continued revisiting its animated library through sequels and live-action adaptations.
Those familiar names can reduce some of the risk involved with launching entertainment.
Eisner, however, believes companies eventually have to move beyond them.
Eisner Thinks Star Wars May Have Gone Too Far
Eisner specifically pointed toward Star Wars while discussing the danger of relying too heavily on established franchises.
He suggested Disney may have “overstepped its bounds” with Star Wars because of the number of sequels surrounding the property.
That's a noteworthy warning from an executive who came to understand the enormous financial power of established brands.
Eisner isn't arguing that Disney should abandon its biggest franchises. Quite the opposite.
He called franchise licensing “a great way to get in.” But getting in isn't supposed to be the final destination.
“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.”
That philosophy applies well beyond gaming.
Disney's Old Failure Has Turned Into a New Challenge
Disney once struggled to understand how its characters belonged in emerging entertainment formats. Today, the company understands intellectual property exceptionally well.
Perhaps too well.
The challenge now is finding the right balance between exploiting proven franchises and creating stories audiences haven't encountered before.
That's what makes Eisner's admission about Hollywood's gaming failure so relevant decades later.
Disney eventually found an answer to its gaming problem through licensing. But the larger question surrounding intellectual property never disappeared.
Nearly 21 years after Eisner left the company, Disney still faces the same fundamental challenge: knowing when a familiar name creates an opportunity — and when it's time to create the name audiences will care about next.
