Disney Reports Losses in Game Segment, Moving Away from Console Game Development

| | Comments (0)
Yesterday, the Walt Disney Company reported its financial results for the fourth quarter and full fiscal year ended October 2, 2010. Read on for more details...
We won't dwell on Disney's overall results, but will focus on the results of the Interactive Media division that includes Disney's game operations. For the full year ended October 2, 2010, Disney's Interactive Media group reported full year revenues of $761 million (compared to $712 million in the previous year) and an operating loss for the Interactive Media segment of $234 million (compared to an operating loss of $295 million in the previous year). For the fourth quarter, Disney's interactive Media segment reported revenues of $188 million (compared to revenues of $157 million in the same quarter the previous year) and an operating loss of $104 million (compared to an operating loss of $114 million in the same quarter the prior year). Interactive Media was the only segment within Disney to report an operating loss for the quarter or the year.


Disney did attribute the modest improvement in the results of the Interactive Media segment to "lower cost of sales on self-published video games, increased subscribers at our mobile phone service business in Japan and higher Club Penguin subscription revenue."

In the company's conference to discuss the earnings release, Disney's President and Chief Executive Officer Bob Iger plans to invest less in the development of games for consoles, and focus more on social networking games and mobile applications.

Leave a comment

About this Entry

This page contains a single entry by Editor published on November 12, 2010 10:38 AM.

Fable III Review was the previous entry.

uDraw GameTablet and uDraw Studio Now Available for the Wii is the next entry.

Find recent content on the main index or look in the archives to find all content.

 

Add to Technorati Favorites