Disney's Interactive Media division, which includes the company's games business, recorded a $234 million (£147.7m) loss for the financial year ended October 2, 2010, an improvement on the $395 million (£245.9m) loss for the previous year
Revenues were $761 million (473.9m), up from the $712 million (£443.4m) a year earlier.
The company benefited from improved costs on self-published games, higher subscription revenue on Club Penguin and increased subscribers to its mobile phone business in Japan.
Lower sales of videogame products were due to catalogue games rather than new releases with bundled accessories in the prior year.
Overall, Disney recorded a full-year profit of $3.9 billion (£2.4bn), up 20 per cent from the previous year's $3.3 billion. Revenues were $38 billion (£23.6bn), up 5 per cent from $36.1 billion.