$54 Million Goes Down Disney's Game Division Drain

$54 Million Goes Down Disney's Game Division Drain

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It may sound bad, but at least it's better than last year.

Everything's going swell over at the House of Mouse, with all divisions reporting profits ... well, all except Disney's game division. A $54 million loss has been attributed to its woefully performing game unit. Still, there is some small reason for hope: $54 million may seem like a lot of money but, compared to the game division's $70 million loss in the previous financial year, it's really not that bad.

In fact, it's $16 million better, which can be attributed in part to happier times at Disney's Japanese mobile game studios and fewer expenses generated by its social gaming unit. The interactive division bumped up revenues by 8% thanks in no small part to these factors. Meanwhile Disney Infinity launch delays will keep the game unit's anticipated operating loss at pretty much the same level in the coming financial quarter.

In Disney's Shareholder Letter published January 2013, CEO Robert Iger said that 2013 would be a good year for the company's online presence, "as we reinvent the way video games tell stories" with Infinity. Presumably Iger is also hoping it will reinvent his game division's bottom line.

Source: Gamespot

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How is this possible? With all their IPs they report such a hug loss? Well at least with all the Lucas IPs they can at least break even now.

Is 'loss' defined as having spent more money than you made in the financial year, or didn't make as much money as was projected/promised?

I really hope Disney Infinity doesn't take too long. i guess It's not surprising they outsourced Star Wars.

flarty:
How is this possible? With all their IPs they report such a hug loss? Well at least with all the Lucas IPs they can at least break even now.

That's up to EA

Sansha:
Is 'loss' defined as having spent more money than you made in the financial year, or didn't make as much money as was projected/promised?

The first one. Though the second i suppose does apply too.

DVS BSTrD:
That's up to EA

Do EA have all the rights to their characters as far as games are concerned?

flarty:

Sansha:
Is 'loss' defined as having spent more money than you made in the financial year, or didn't make as much money as was projected/promised?

The first one. Though the second i suppose does apply too.

If you have a store open for a day and don't make enough sales to cover your expenses, you lose money, but if you keep the store closed, you've 'lost money' by not allowing a profit to come in.

So yeah, could go either way.

flarty:
How is this possible? With all their IPs they report such a hug loss? Well at least with all the Lucas IPs they can at least break even now.

Yeah, sadly, EA ended up with those rights, due to some serious short sightedness on Disney's part.

BaronIveagh:

flarty:
How is this possible? With all their IPs they report such a hug loss? Well at least with all the Lucas IPs they can at least break even now.

Yeah, sadly, EA ended up with those rights, due to some serious short sightedness on Disney's part.

Jaysus fackin christ.

I thought Disney was a publishing studio. Surely they would of done better offering the IPs to someone like double fine on a royalty basis. If that had happened i swear the main demographic wouldn't be young adults anymore.

 

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