If you click on a link and make a purchase we may receive a small commission. Read our editorial policy.

Disney game sales drop in slow Q2

Revenues and profits down as publisher misses Turok boost

Disney’s Interactive Media division has seen a 17 per cent fall in revenues in its second quarter, with a lack of new self-published titles blamed for the drop.

The Interactive Media division was created in June 2008 and comprises both the Walt Disney Internet group and the video game-focused Disney Interactive Studios. Revenues for the division fell to USD 129 million (EUR 97 million) for the three month period ended March 28. However, net income was down by only 2 per cent to USD 61 million (EUR 46 million).

Although no figures were provided for the individual groups within the Interactive Media division, a decrease in revenues at Disney Interactive Studios was said to have been offset by increased revenues from the company’s mobile phone business in Japan.

Lower marketing expenses and administrative costs also helped to offset the fall, as well as the continuing success of the Internet group's child-friendly Club Penguin and Toontown massively multiplayer online titles.

The fall in revenues for Disney’s video games business was contrasted with that of a year ago, when the release of adult-rated license Turok helped to boost sales. More recently Disney has relied more on its own internal media tie-ins, such as High School Musical.

The possibility of a Turok sequel is currently unknown, following job cuts at internal developer Propaganda – as well as Fall Line Studio. Non-traditional Disney titles such as Black Rock Studio’s driving game Split/Second and the first project from Warren Spector's Junction Point are still in the pipeline.

As a whole the Walt Disney Company saw revenues fall by 7 per cent to USD 8.09 billion (EUR 6.08 million), compared to the same period last year. Net income was down by 46 per cent to USD 613 million (EUR 461 million), but these results were slightly above market expectations.

"We had a difficult second quarter due to the weak economy and other factors," said Robert A. Iger, president and CEO of The Walt Disney Company. "At the same time, we remain focused on our core business strategy and believe our creativity, brands and businesses will serve us well as the economy recovers."