Disney interactive loses $115 million

[erasure fan1]

Here is an article about it:

The January-March quarter was a rough one for the Walt Disney Company's Interactive Media group. The division reported a three-month shortfall in operating income of $115 million, an increased loss from the $55 million deficit it reported during the same period in 2010. The shortcoming came despite a slight uptick in revenue, which rose $4 million to $159 million for the quarter.

The January-March quarter was a grim one for Disney's Interactive Media group.

Interactive Media losses were even higher for the six months ended April 2, 2011. During that period, the division lost $128 million, nearly double the $65 million it lost during the same time frame the year prior. Revenue was $508 million, up year-on-year from $376 million.

Part of the reason for the Disney Interactive Media group's deepening losses was a $34 million accounting charge relating to the purchase of Playdom. Last July, the multimedia conglomerate purchased the casual online gaming portal for a whopping $563 million.

Disney's January-March shortfall comes despite the fact the company trimmed the division's payroll significantly during the quarter. In January, the corporation closed Vancouver-based Propaganda Games, the internal developer behind the reboot of Turok and the Tron: Legacy film tie-in Tron: Evolution. Shortly thereafter, the company also culled nearly 350 positions inside the Interactive Media group, including Disney Interactive Studios and Epic Mickey-maker Junction Point Studios. The layoffs continued in March and, most recently, affected Split/Second developer Black Rock Studios just last week.

Overall, the Walt Disney Company saw $942 million in net income on $9.08 billion of revenue for the January-March quarter, the second of its fiscal year. Six-month net income was $2.24 billion on revenue of $19.79 billion for the half-year.

I think part of the problem is Disney just cant seem to go all in on a video game idea. In general, the gaming community just doesnt respect Disney as a game maker. When they have a fantastic idea for a game, like POTC armada of the damned, that was getting tons of positive play from the gaming community, they can it in favor of a tron tie in. That screams sell out. Everyone knows that movie tie in games are not very good and really just made to try and make a quick buck. Disney needs to get some of the writers from pixar, come up with a great story and concept, and follow through with it. Epic Mickey was a good start, although its not perfect its a step in the right direction. Its going to take a few well done original games to win over the gaming world. I have no doubts that they can do it, I just dont think they really want to.

 

[Master Yoda]

Movie tie in games are typically just shovelware. Every gamer knows this and avoids them. They need an original game. With the creative team Disney has they have the potential to catch lightning in a bottle like Valve did with Portal.

 

[MansionGoer13z]

I think it was wrong for Disney to make Epic Mickey a Wii exclusive. Wii was never a NextGen system, just really an upgraded Game Cube with totaly interactive features. I'm sure if it was on X-Box and PS3 Disney Interactive might've looked a bit better.

 

[Master Yoda]

I think it was wrong for Disney to make Epic Mickey a Wii exclusive. Wii was never a NextGen system, just really an upgraded Game Cube with totaly interactive features. I'm sure if it was on X-Box and PS3 Disney Interactive might've looked a bit better.

Quite true. I had zero desire to play this on the wii. Had it come out on the 360 I would have picked it up.

 

[erasure fan1]

Quite true. I had zero desire to play this on the wii. Had it come out on the 360 I would have picked it up.

Yea I totally agree. I have a wii but did not pick it up because of the speculation of a 360 port. I still think it could happen with kinect support.

1. Movie tie in games are typically just shovelware. Every gamer knows this and avoids them. 2. They need an original game. With the creative team Disney has they have the potential to catch lightning in a bottle like Valve did with Portal.

1. exactly, did you see the reviews for Thor? Game spot gave a 2, IGN a 1 1/2 star.

2. Disney wouldnt get a portal because they would have shut it down and said it didnt have broad enough appeal. Disney has some of the most creative people on the planet yet you would never know it from Disney interactive. That is whats so maddening.

 

[Thrill]

Epic Mickey was a good start, although its not perfect its a step in the right direction. Its going to take a few well done original games to win over the gaming world.

Agreed. Epic Mickey was a good game, and a step up from pretty much all of Disney's other video games. Not enough to make Disney a great gaming company on its own, but a huge improvement nonetheless.

And yet they cut Junction Point's payroll. I know nothing about business, but it would make sense that you don't make huge layoffs at a successful division. I guess branding is more important. -_-

I think it was wrong for Disney to make Epic Mickey a Wii exclusive. Wii was never a NextGen system, just really an upgraded Game Cube with totaly interactive features. I'm sure if it was on X-Box and PS3 Disney Interactive might've looked a bit better.

I have it for Wii, but if a PS3 port were to come out, I'd seriously consider getting it again for the improved graphics.