Disney game division loses $54 million

House of Mouse's Interactive sector the only division to lose money in latest quarter.

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Disney's game division was the company's only unprofitable business during the media giant's latest quarter.

The company reported earnings for its second quarter ended March 30 this week, revealing its Interactive business posted a loss of $54. This is $16 million better than last year's $70 million hit.

Improved performance in the Interactive division was attributed to revenues rising 8 percent to $194 million due to growth in Disney's Japanese mobile business and lower accounting expenses at its social game studios.

Looking ahead, Disney chief financial officer Jay Rasulo said Interactive expects to see a comparable operating loss in the current quarter due to the delay of Disney Infinity from Q3 (April-June) to Q4 (July-September).

Earlier this week, Disney and Electronic Arts signed a deal that will see EA become the exclusive developer of "core" Star Wars games. New projects are already in development at Battlefield studio DICE and Dead Space outfit Visceral Games.

Discussion

52 comments
Atombomb1981
Atombomb1981

Bad decisions and crappy titles...no surprise there.

commanderxp90
commanderxp90

LOL!  The Disney already got bad karma that's why the Disney laid off employees at the LucaArts. O_o

Barrakas21
Barrakas21

So they close lucasart when you should close that piece of shit studio i hope you bankrupt

hadlee73
hadlee73

So basically they were one of the few game divisions in the last financial quarter to actually increase their profit margins (even though it is still in the negatives), rather than getting worse. No wonder they're sinking so much into mobile. Looks like they are hedging their bets on Disney Infinity, rather than Star Wars.

HallowBastion
HallowBastion

Hmm...54 million? Maybe they should get on S-E's ass about Kingdom Hearts 3. 

moniso
moniso

News made my day.

Snaptrap
Snaptrap

LOL! Disney sucks anyway. Not even a shadow of what it once was.

KeenoControl
KeenoControl

Well Disney, what did you think would happen? Cancel Star Wars 1313, cancel Star Wars: First Assault, and shut down LucasArts. Where do you think your games division is going to get its money from?

Mackan52
Mackan52

oooh 54 million


Disney boss: ED!? Could you be a sport and sweep up 54 from the bathroom? We got a few beggar bills to pay.

Fursnake
Fursnake

Karma is a bitch, eh Disney?

Cryptic_Shadow
Cryptic_Shadow

This gives me some concerns for the future Star Wars games with EA.

enoslives7
enoslives7

Is it just me, or did Ironman 3 really suck?? The whole 'invincible lava people' was just too ''X-men'' for me. And what was up with that wasted hour where he hangs out with that homeless kid???  WTF?!

vadagar1
vadagar1

wow the devil and emperor palpatine team up, this planet is F***ed

DESTROYRS_F8
DESTROYRS_F8

hmmmm, I didn't see Lucas Arts lose that much.

Mayleene
Mayleene

So glad to see anyone connected to EA loosing.

Dieofnv
Dieofnv

and i hope they lose more and more >:) 

RabidBurp
RabidBurp

So I guess that's a 'No' on a Maui Mallard in Cold Shadow sequel?

powerdesignkid
powerdesignkid

Mickey farts and they make more money than that. They'll be fine.

Lykanthropie
Lykanthropie

who cares about disney games - whoever wants games for children have a lot of better games to choose from.

codeman101360
codeman101360

Hopefully they get shut down before they have a chance to shit all over Star Wars.

Elwin2012
Elwin2012

Hope it will be better in the future never like it when some game studio has problems. 

:/

raahsnavj
raahsnavj

... and they got in bed with EA, a company that hasn't turned a profit in the last how many years now? I have a feeling their games division won't really have much of a turn around in the near future either. 

SnakeEyesX80
SnakeEyesX80

"Disney's game division was the company's only unprofitable business during the media giant's latest quarter."

Sounds like they've got some duds running the games division then.

smtgfx
smtgfx

I hate Disney for shutting down Lucas Games!!!!

nanorazor
nanorazor

@commanderxp90 Disney should screw themselves because their own studios are way crapper than Lucasarts

OldKye
OldKye

@Barrakas21 Well can you blame them? clearly they wouldn't know a good game studio if it was sold directly too them by George Lucas!

aussiemuscle
aussiemuscle

@Snaptrap Disney put out crap games and wonder why their studio is in the sh~tter??? With all the IPs in the disney arsenal, i'm sure they can find something worth making a game around.

Snaptrap
Snaptrap

@Mackan52 That's what people thought about EA. It doesn't take much to put a large company near the red and Disney is not unknown for having it's own financial troubles.

pozium
pozium

@Cryptic_Shadow I have some faith EA has made lousy managerial decisions, but the have really creative teams that you can be sure would build up a good starwars franchise (just hoping anyway)

Karmazyn
Karmazyn

@enoslives7 I saw it in the cinema and unfortunately from my point of view you are right. It sucked big time. It was not as bad as the 2nd one but it was still bad. Mr Stark was good as always but plot and supportive cast was really poor. Mandarin could have been  better, I will not reveal any story but what they did with it is just stupid. overall it was average action movie and I guess that current Metacritic score reflects the overall movie quality, maybe even rates it by 10 points too high.

Hurvl
Hurvl

@enoslives7I really enjoyed it and saw some that thought that the first movie should have been like that. Although, I believe they were referencing to the seemingly helpless no-super-costume state that he was in for a long part of the movie. Take away the suit and Tony stark is still a genius (and billionaire, playboy, philanthropist). The firemen were a bit overkill, but the effects were nice and I liked that Iron Man's armor didn't protect him from their touch, it's no fun if the hero can't take any harm.

Hurvl
Hurvl

@hoplayletsplay If only they had sold a few more copies, they could have posted a profit. Alas, they'll have to hope that their Skylanders knock-off and licensing fees on Star Wars games will get them a profit.

ethanm1834
ethanm1834

@raahsnavj Why Not their just liscencing, EA would have to pay them before paying themselves. Straight Profit.

BlackBaldwin
BlackBaldwin

@smtgfx 

disney hasn't been any good since the 90s in my opinion but hey reality t.v. is the bees knees so what do I know.  /facepalm

Riddick123
Riddick123

@Epic75 @Karmazyn @enoslives7 Don't judge it until you see it.  I am a comic fan and I liked it.  I have friends who didn't as well.  And obviously some who did.  Better than the 2nd for sure.