Light & Wonder, Inc. has recently provided an update on the Dragon Train litigation through a video statement from its President and CEO, Matt Wilson. In the statement, Wilson addresses key areas of concern and outlines the company's plans moving forward.
Firstly, in terms of market impact, the company has approximately 33,000 leased units installed in the North American market, with Dragon Train representing a mid-single digit percentage of that installed base, roughly 2,200 units. The company is diligently working with customers to convert these games out, and to date, there have been no removal requests from customers. Additionally, they have a lineup of games from their portfolio of franchises, such as Ultimate Fire Link, Invaders, Dancing Drums, and Wizard of Oz, to backfill these requests.
In the Australian market, where Dragon Train has been successful, the company has ceased selling the game and is offering customers a wide range of alternative games such as Lion Link, Huff N’ Puff, and Shenlong Unleashed to fill the sales pipeline.
The company also intends to develop a future version (v2.0) of Dragon Train in compliance with the order, as it remains a high priority and an ongoing franchise in their portfolio alongside other successful games like Dancing Drums and Ultimate Fire Link.
Regarding the broader L&W game portfolio, the company emphasizes that Dragon Train is just one of the many successful franchises it creates, with over 130 games developed annually and a robust and diversified portfolio available across global channels. Light & Wonder achieved the #1 ship share in North American game sales in the second quarter of 2024, further highlighting the strength of its brand and franchises.
Another notable development mentioned in the statement is the departure of Dragon Train’s designer from Light & Wonder, with the company confirming the termination of this designer earlier in the week.
In terms of capital allocation strategy, the company reassures that share buyback remains a key focus, with a new $1 billion program in place, seen as a significant value creation initiative for shareholders.
As a result of these announcements, the company's shares have moved 3.8% on the market, and are now trading at a price of $92.86. If you want to know more, read the company's complete 8-K report here.
