The Walt Disney Company announced its third-quarter results for the period ended June 27. Overall sales dipped 7% to $8.6 billion while net income fell 26% to $954 million, but it was the games business that saw the sharpest decline at Disney.
The Interactive Media segment experienced a 20% decline in revenues to $113 million and the group posted a loss of $75 million, which was actually a slight improvement from the $91 million loss posted during Q3 a year ago. During the nine-month period, however, total losses were up from $138 million to $181 million.
Disney blamed the poor economy for its downturn and Disney Interactive said it was up against a tough comp from last year when the Prince Caspian video game released. "Lower costs at Disney Interactive Studios were more than offset by a decline in unit sales of self-published video games at Disney Interactive Studios reflecting the strong performance of The Chronicles of Narnia: Prince Caspian in the prior-year quarter," the company said.
With Split Second, Spectrobes: Origins, Warren Spector's next project, Hannah Montana, the online Club Penguin virtual world, and more, Disney Interactive still has plenty going for it.
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