Disney Games Business Falls 20 Percent In Fiscal Q3
Disney's various divisions all saw lower sales for the quarter ending in June, with Disney Interactive Media revenues dropping 20 percent, the most out of all of the company's businesses.
Disney reported that in fiscal Q3, Interactive Media logged revenues of $113 million, down from $142 million for the same quarter a year ago. Lower marketing and development costs in the games business helped narrow operating losses in the segment, which declined to $75 million from $91 million a year ago.
Numbers were down on decreased unit sales of self-published games compared to the same quarter last year, which saw the strong release of The Chronicles of Narnia: Prince Caspian.
Disney disappointed in its overall results for the quarter, reporting revenues of $8.6 billion, down from $9.24 billion a year ago. Profits were $954 million, down from $1.28 billion.
The company blamed "adverse economic conditions" for the lower figures. "While a tough global economy impacted our performance in the quarter, we remain encouraged by the relative strength of our business," said president and CEO Robert A. Iger.
Disney Interactive's roster of released and upcoming games includes Split Second and Pure from Black Rock Studio, licensed titles based on Hannah Montana, Pirates of the Caribbean: Armada of the Damned from Turok developer Propaganda, Warren Spector's unannounced game from his studio, Junction Point, and the online kid-friendly gaming community Club Penguin.