Disney has posted its full-year earnings for the 2009 fiscal year ended October 3 and saw overall net income dip 25% to $3.3 billion. The Interactive Media segment, which houses both Disney Interactive and Disney Online, was the only division at the company to suffer a full-year loss. Interactive Media posted a net loss of $295 million, slightly worse than the $258 million loss last year (when the segment was again the only division to post a loss). Net revenues for Interactive Media were essentially flat at $712 million.
"Lower operating results for the year were due to a decrease at Disney Interactive Studios, partially offset by an increase at Disney Online. Lower results at Disney Interactive Studios were driven by decreased net effective pricing and unit sales of self-published video games, decreased licensing revenue and higher unit cost of sales, which included the cost of bundled accessories and music royalties for current year titles," the company explained. "Significant self-published video games in the current year included High School Musical 3 and Sing It while the prior year included High School Musical, Turok and Pure. Improved results at Disney Online reflected lower marketing costs and higher Club Penguin subscription revenues."
On a conference call outgoing CFO Tom Staggs noted that games division loss is partially a result of Disney building up its own publishing capabilities. “We’re making an investment [in self-published games]. We’re currently in a loss situation and would like to see that reverse itself as we build out to scale,” he said.
Disney's been making some big moves in the business by acquiring Marvel (which has other implications besides games of course), acquiring Wideload Studios and prior to that Junction Point, which will see industry veteran Warren Spector generate the much talked about Epic Mickey.
