Disney game division loses $58 million

House of Mouse's Interactive sector sees lower operating results due to decline in console games and no new releases in the quarter.

Disney's Interactive division--which houses the company's gaming business--posted a loss of $58 million for the quarter ended June 29, the entertainment giant has announced as part of its latest earnings report.

The $58 million loss was worse than the $42 million loss the company recorded in the April-June quarter last year. Disney Interactive revenues for the period fell 7 percent to $183 million, compared to $196 million last year.

Lower operating results were attributed to lower minimum guarantee recognition, a decline in console game sales (Disney released no new console games in the quarter), and a decrease in the company's social game business. These decreases were offset partially by growth at Disney's Japanese mobile business.

Disney Interactive was the only Disney business unit to post a loss for the quarter. The company's Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products divisions all were in the black for the April-June period.

The company has two major console games on the horizon: this month's Disney Infinity and 2014's Fantasia: Music Evolved, from Guitar Hero and Rock Band creators Harmonix. In a post-earnings financial call, Disney CEO Bob Iger spoke highly of Disney Infinity.

"We are also looking forward to the launch of Disney Infinity on August 18," Iger said. "We have showcased Infinity to a number of audiences and we are very encouraged by the overwhelmingly positive response we are getting across the board from retailers, reviewers, and consumers alike. And we are also very proud of the several best of awards that Disney Infinity earned at this year's E3."

For more on Disney Infinity, check out GameSpot's previous coverage.

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

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Discussion

83 comments
SavoyPrime
SavoyPrime

So unless Disney Infinity works out for them, then the division will tank for sure. Should have kept LucasArts, Propaganda, and Black Rock around to help out.

jrabbit99
jrabbit99

If they hurried up with Star Wars Battlefront already, then they wouldn't be posting at a loss.

AshTrai
AshTrai

Make more than shit movie tie-in games and u might actually make profit.

Also, disbanding the lucas arts games dept was just the dumbest thing ever.

tightwad34
tightwad34

Make some games geared toward people over the age of 16 and  you will sell more.

Gegglington
Gegglington

ha in my newspaper today has a worlds richest fictional character  list scrooge mc duck tops this with £42.1 billion 

JOHN1486
JOHN1486

They make that back on a weekend in the Disney stores with their over priced garbage.

aboki808
aboki808

just make a porno, problem solved.

hadlee73
hadlee73

Some of the best and most well-recognized licenses in the business, and yet has no idea how to use them.

blueboxdoctor
blueboxdoctor

Why don't they team up with a proper game studio at this point, it's clear they have little interest in doing it themselves (though, Infinity seems cool).

SANDMAN201
SANDMAN201

Disney's crap no one likes you Disney Go aWaY! #SWAG 

OldKye
OldKye

Should have shut down Disney Interactive Studios and left LucasArts open then they may actually be making games people want to play.....

Bad move Disney.

nurnberg
nurnberg

Disney's gaming division is sort of pathetic.  It's filled with movie tie-in games that flop in sales.  As Disney as a whole is making enormous profits, this loss is sustainable for them.

Gegglington
Gegglington

i can picture a 5min short of goofy  and donald in accounts making paper hats out of $100 bills

JOHN1486
JOHN1486

Last game I played by Disney was Aladdin for SNES.

KeenoControl
KeenoControl

Shouldn't have cancelled Star Wars 1313 and that new Star Wars fps

HyperWarlock
HyperWarlock

Looks like Disney is finally dying. I wonder if they will close the parks.

ioshilee
ioshilee

Shut down your crappy division and give licenses to the devs. SW license to BioWare and all kids stuff to Nintendo.

kbaily
kbaily

Dear Disney, if you don't want to lose money on video games, stop making crappy shovelware.  Also why did you waste money making Lone Ranger figures for Infintity instead of you know DISNEY characters like Simba, Aladdin, Disney Princesses to appeal to girls.  Also why not release the rights to your old NES/Capcom games like Darkwing Duck, Chip N' Dale, Mickey's Magical Quest, etc.  Put them on Nintendo eshop and you make a ton without spending a lot.

dogbert784
dogbert784

You're willing to lose this much money on your pathetic division but you shut down LucasArts to reduce "risk?" 

Amazing. 

udubdawgz
udubdawgz

let me get to the heart of the issue:

a.) i have kids and we've been on a buying frenzy the past few months, yet, almost all the kids games are heavily inflated in price.  i started researching this observation and i can't even believe how ridiculous it is.  and, i'm not talking just disney.  i'm talking almost ALL "kids" games are outrageously priced and don't come down in price after months and years of release.

b.) uh, lots of bad games.

the result?  lots of games for the parents and hardly any for the kids.

HartPuncher
HartPuncher

If you make shitty games consistently you will lose your ass. Simple science! 

KimCheeWarriorX
KimCheeWarriorX

yes disney, you lost money on your game division, so please stop making mediocre to crap games and let other developers license out your properties and do a better job instead

ethanm1834
ethanm1834

I'm sure Disney Infinity will do well with their target audience, and as the report suggests their other divisions are posting in the black.  Going third party for games that don't speak to their direct properties is probably the way to go.  Which by the Star wars line is what they are doing. 

Nothing really to see or should be all that shocking.

KingTrax999
KingTrax999

I'm sure Disney Infinity will do well, but they still do better licensing to actual game developers.

Snakepond1
Snakepond1

First Mickey was alright, but the second was crap.

Fred316
Fred316

They don't have to worry...


When they release Disney Infinity, they'll probably make like a gazillion dollars...

SirNormanislost
SirNormanislost

"Disney released no new console games in the quarter"

..............well then why is even news? isn't this just stating the bloody obvious?

Xpyder
Xpyder

Disney should focus on what is really working and by that i mean MOAR MARVEL PLZZZ!!!!!

Gegglington
Gegglington

and also jonny depp new movie lone ranger lost £125 million ha

jeffcliff
jeffcliff

@JOHN1486 That's probably because you are old enough to have owned an SNES and you are no longer in the target demographic for disney games. Incidentally, that was the last time I watched Nickelodeon.

jeffcliff
jeffcliff

@HyperWarlock They lost 58 Million this quarter from this one single division. they profit at least TEN BILLION a quarter (based on 5 year old reports) from Disney world alone (not to mention disney land, disney paris, disney japan, disney cruises, etc.) Not going anywhere. 

udubdawgz
udubdawgz

@kbaily  

maybe, i missed my calling:  every name you listed i could think of a great game.  except, the girl part, lol.

do the devs/pubs NOT have kids?  

it's not about TRICKING parents and kids.  

it makes me sick.

 

kbaily
kbaily

@udubdawgz It is a shame that the only company interested in making halfway decent, kid friendly games is Nintendo.  Sure Sony throws everyone a Sackboy or Ratchet shaped bone now and then but for kids it's either Nintendo or whatever crummy liscenced game you can get for Kinect.  Doesn't help when cheap mobile games entertain kids easily too.

kbaily
kbaily

@ethanm1834 Yes Disney Infinity including such beloved characters like the Lone Ranger and Tonto from that movie that bombed as opposed to Mickey or Simba or Aladdin. Smart move there Disney.

Busta
Busta

@jeffcliff  And they also said their japanese mobile dev (of disney interactiv) nearly off set the loss.  Sadly.. They'll stick around.

Busta
Busta

@udubdawgz @kbaily  Ya.. How is the movie division in the black?  Lone ranger? John carter.. ( liked john carter)