clock menu more-arrow no yes

Filed under:

Disney profiting everywhere, except in games

New, 25 comments

Making money except in games

brave
brave

The Walt Disney Company reported a strong third quarter in earnings with diluted earnings per share increasing by 31 percent to $1.01 from $0.77, but the interactive arm of the business fell short, with revenue decreasing by 22 percent.

The Walt Disney Company reported a strong third quarter in earnings with diluted earnings per share increasing by 31 percent to $1.01 from $0.77, but the interactive arm of the business fell short, with revenue decreasing by 22 percent.

While the rest of the business pulled in $11 billion in revenue in April-June 2012, their video game studios lost $55 million in the year ending June 2012.

The interactive arm of the business reported a decrease in revenue for the third quarter, with the business bringing in $196 million in revenue compared to $251 million earned during the same period in the previous year.

Disney attributed the decrease in revenue to lower sales volume, which reflected fewer significant titles in release in the current year (Brave) compared to the the stronger releases of the previous year (Cars 2, LEGO Pirates of the Caribbean).

The company was able to improve its operating results from a loss of $86 million in the prior-year quarter to $42 million in the current quarter. The improvement was driven by a shift towards online and social game development, which requires lower product development costs.