Disney game division posts $65 million quarterly loss

74% revenue bump from Split/Second and Toy Story 3 sales can't keep interactive media sector out of red; profits rise 40% company-wide.

The past several years have seen the Walt Disney Company bulk up its interactive media group and its game-publishing label, Disney Interactive Studios. The company bought Black Rock Studio in September 2006 (when it was called Climax Racing) in order to get into the racing-game market with titles such as Split/Second, released May 18. The media giant is also bringing development of its own properties in house; Disney self-published Toy Story 3 in mid-June, the first Pixar title not to be published by THQ in years.

Sales of Split/Second increased Disney's game division profits, but couldn't keep it out of the red.

Today, Disney released its financial report for the three months ending July 3, revealing that both games had a big impact on its interactive media group's revenue. (The company did not give exact sales figures for either.) For the quarter, revenue was $197 million, a 75 percent jump from the $113 million it took in during the same period last year. The increase was less impressive for the nine months ending July 3, which saw interactive media revenues increase just 5 percent to $573 million.

Unfortunately, the lukewarmly reviewed Split/Second and Toy Story 3 couldn't keep Disney's game business out of the red. The interactive media group lost $65 million during the quarter, 13 percent less than the $75 million it lost the year prior. Nine-month losses for the division stood at $130 million, down from $181 million during the same period in 2009.

Overall, though, the Walt Disney company was in stellar shape financially. Company-wide revenues rose 16 percent year-over-year during the quarter to $10 billion. Net income--aka profit--saw an even steeper climb of 40 percent to $1.33 billion, thanks in part to its film division producing such blockbusters as Alice in Wonderland and Toy Story 3.

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Discussion

66 comments
digi-demon
digi-demon

So what exactly does all this mean... didn't Splt-Second turn a profit?

sonicphoto
sonicphoto

well this is sad news because split second is a really nice game and toy story 3 is actually one of the best adaptations of a pixar movie in a long time. And its great that I for once loved the toy story 2 game for the N64 so it was great to see they did not ruin things with the third one. Sure is not amazing, but is fun either way and kids will love it. Split Second also is a really nice new concept to already established racing games that I was actually surprised Disney was supporting it.

gbrading
gbrading moderator

Well, even if Disney Interactive aren't doing well, Disney overall certainly is.

CaptainHerlock
CaptainHerlock

@swamptick Most gamers are "too cool" for Disney now. Mainly because they feel to be "adult" they have to play games with brooding anti-heros, toting huge guns, and blowing away random, non-descript aliens/Nazis/terrorists/mutants for no apparent reason. It's a cliche' that doesn't seem to get old with them.

SuperMegaMaster
SuperMegaMaster

Too bad! but this is nothing..Disney will rise again..if they loose in games they win in movies..

SicklySunStorm
SicklySunStorm

bring on the thumbs down, because I'm one of the few who thinks it's disappointing to hear... that said, Disney are one of the few companies who can and will outlast small losses like this. They're smart. They've released some excellent games of late and I'm looking forward to more from them.

SapSacPrime
SapSacPrime

Disney have released had some great games for their characters in the past but they have had a much higher ratio of rubbish, a lot of the games are so poorly made they are an insult to the children they are trying to con into buying them.

Kajiuro
Kajiuro

I feel the need to say "good, I'm glad." The less Disney games released the better.

destroyeur
destroyeur

I bet they lose more when the DOW drop a point.

Shadow_Fire41
Shadow_Fire41

lol, does this surprise anyone? they need to stop focusing so much and gimmicks and try and make original games, or if they are desperate enough, contact Square and make the next Kingdom Hearts game (not a spin-off, the third one)

swamptick
swamptick

Disney will make a comeback. For all you haters get real. You can't tell me Disney has not given you some joy at some point in your life. It's sad that so many adolescents come to a message board and talk poorly of someone or something in order to make themselves appear as though they have discriminating tastes. Disney has brought a LOT of people a LOT of joy. I for one, hope they make some money.

zync-
zync-

in fact none care if disney loss $65 million, in fact $65 million is a candy or 1$ for Disney Corp. But loss $65 million for game Is a Epic Fail for them......@asimplerapper Yes Disney Own the Half World include de porn induntrie, and prostit..... XD

steve4123456789
steve4123456789

Who the hell cares about Disney they should stick to making kiddy movies, and cartoons, instead of infecting, and curruping every part of society; we already have micky mouse, and spider man teaming up, what will be next?

acasero44
acasero44

Since when is disney into video games? All this time i thought they only did tv shows, movies, and attracton parks.

asimplerapper
asimplerapper

and i cant bloody believe disney owns marvel :'(

giddyupgroudon
giddyupgroudon

toy story 3 was amazing, as both a game and a movie. TOY BOX MODE FTW!

reeree746
reeree746

I don't really like racing games as a whole. The only one I've ever owned was Burnout.

jvsexy
jvsexy

@seriousplayer_d - Burnout was good too but I got bored with it. Never really completed it. But split second I enjoyed every bit.

seriousplayer_d
seriousplayer_d

@jvsexy Split/second best racing game??? To me it was a boring game with much of the same, all the time. Burnout was even better with more variation.

jvsexy
jvsexy

@xthabeast - your wrong! split second was an awesome game. It was the best racing game I played after NFS:Most Wanted. Go play the real thing before you comment.

Pete5506
Pete5506

Epic Micky will turn that around

SteelBallsBill
SteelBallsBill

Just make more shovelware for the Wii and profits will go back up! :)

shadowkiller11
shadowkiller11

"Lukewarmly" since well were good reviews by the majority considered "lukewarmly"

cf_Kage
cf_Kage

[This message was deleted at the request of the original poster]

thingta42
thingta42

When i thin of Disney i think of kids cartoons. Not video games.

xthabeast
xthabeast

I wanted to get Split Second. But then I found out Disney developed it and knew it would suck. Guess what, I was right.

NicoLikesSoda
NicoLikesSoda

make kingdom hearts 3!!!! it will solve your problems!

grgcucu
grgcucu

@Driscoal Hey! That's the standard now, and don't forget jonas toilet paper, that's the softest =)).

Driscoal
Driscoal

"Disney uber-cheaply-produced-Chinese-merchandise-crap-Hannah-Montana-toilet-paper division posts $2,4 trillion quarterly profits".

grasshopper6
grasshopper6

they're in red cause the ceo pockets most of it and insures that when it's time to go there'll be a nice package to take too

Lazay727
Lazay727

Disney finally makes games that arent shovelware and they lose money.... That is why people do shovelware in the first place. Low costs-high profit.

moatazzozo
moatazzozo

Hi Guys i played split second and i can tell you that the game is unique and very interactive with the explosions and the plane falling on ....... just lets give them a chance to show what they got and from what i saw they got alot so give em a break

daabulls23
daabulls23

Disney wouldn't seem like a company that would make good games (not sure why), but they do.

xXDante666Xx
xXDante666Xx

@Toysoldier34: So you are saying that a PS3 populace of around 35 million would by more copies of a Kingdom Hearts game than the 190 million (DS 135, PSP 60 million) units the handhelds have? Needless to say that is doubtful.

Solidsnake13_2
Solidsnake13_2

Thats good for Disney Games, I really enjoyed Split/Second and Toy Story (for some odd reason that I'd even played it) But I'm sure that Disney's Epic Mickey should really bring them some more money now

Toysoldier34
Toysoldier34

A new solid Kingdom Hearts would put them through the roof. I mean a good KH3 for PS3. Not the two knock offs for PSP and DS. I hate when they take franchises and put them on other systems only. Like in God of War 3 I didn't get some of it because it referenced a lot to Chains of Olympus. Keep games where they start, they can expand but don't cut them off.

XboxGuy1537
XboxGuy1537

Epic Mickey should really help Disney get some more boosts in sales.

mrzero1982pt2
mrzero1982pt2

@guyguyguy1234 not from disney. characters licensed through them. not published by disney games. published through square enix

anthonycg
anthonycg

I didn't know Disney's game division was that profitable anyway. Remember that whenever Disney makes a movie a game comes out shortly after... Split Second was pretty cool though.

fattass21
fattass21

well, if they team up with other companies again, i think they can make a pretty good income from games. overall, still not bad that they made money even with those loses. hope they can keep it going and also improve more on the gaming area.

SDBusDriver1979
SDBusDriver1979

If I could put up a emotioncon to represent my sadness, I would put it up here.

KamuiFei
KamuiFei

Disney, if you really wanna do something with the gaming industry, hook up with Square again and help them make KH3. Just don't touch anything like you did the other times and you'll be golden.

Rippedentrails
Rippedentrails

I think gamespot should stop making these economic articles because half the people posting on them don't even know what they're talking about..

P8rt
P8rt

Tough quarter,but Propaganda Games are busy little bees at the moment. Should be some honey shortly.

godzillavskong
godzillavskong

I think the racing dept.of gaming has lost a lot of interest.If its not Forza or GT, its hard to break into that market. Toy Story 3 does look interesting though, and I'll probably get it once it becomes 29.99.