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Disney Selling Fox Video Game Development Studio
Disney is now selling Fox’s video game studio, FoxNext, to mobile game developer Scopely Games. Founded in 2017 as part of a larger initiative to build theme parks and virtual reality experiences, FoxNext Games published the mobile game Marvel Strike Force, as well as tie-ins for Futurama, X-Files, and Alien. The studio also encompasses LA Studios and Cold Iron Studios.
FoxNext was purchased as part of Disney’s acquisition of 2oth Century Fox last year. However, just last week, Disney removed Fox from that company's logo. Following the buyout, FoxNext was put up for sale last fall. Meanwhile, Scopely Games, which is based in Culver City, is the developer of Star Trek: Fleet Command. Scopely also helmed titles based on Wheel of Fortune, The Walking Dead, and WWE.
According to THR, the deal was signed off on earlier this month, with FoxNext being valued at $1.7 billion. “I’m extremely proud of what our talented team at FoxNext Games has built and accomplished in just a few years, and look forward to joining forces with the impressive team at Scopely," FoxNext Games President Aaron Loeb said following the announcement of the sale. He also lauded Scopely Games as having "a well-deserved reputation as one of the preeminent companies in the free-to-play games arena.” The highly successful Scopely made over $1 billion in revenue last year and had set aside $200 million back in October to “accelerate the company’s M&A and investment strategy.” Evidently, this included the purchase of FoxNext Games.
Of course, this deal does not include the rights to make games based on Fox IPs, as those will naturally remain with Disney. This sale is part of an effort by Disney to shift the company’s focus from developing games in-house to licensing them to established studios, which has resulted in titles such as EA’s Star Wars: Jedi Fallen Order, the Insomniac-developed Marvel’s Spider-Man and Square Enix’s upcoming Marvel’s Avengers. This practice will also be the case for mobile titles, including games based on former Fox IPs, going forward.
Only time will tell what will come from the deal, but with the talent gained from FoxNext Games, Scopely will likely continue its success. As for Disney, this is just another chapter in the tale of their highly-publicized acquisition of Fox, a deal that has, for better or worse, permanently altered the landscape of the entertainment industry for years to come, gaming included.
