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development of its own properties in house; Disney self-published Toy Story 3 in mid-June, the first Pixar title not to be published by THQ in years.
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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