Touchstone Studios

Disney Interactive Studios, Inc. was an American video game developer and publisher owned by The Walt Disney Company through Disney Interactive. Prior to its closure in 2016, it developed and distributed multi-platform video games and interactive entertainment worldwide.

Most of the games released by Disney Interactive Studios were typically tie-in products to existing character franchises. On May 10, 2016, as a result of the discontinuation of its ''Disney Infinity'' series, Disney shut down Disney Interactive Studios, and exited the first-party home console game development business in order to focus on third-party development of home console video games through other developers. However, it continues to release games for iOS and Android mobile devices under its own label, Disney Mobile. Disney Electronic Content is a spiritual successor to the company.

History

1988–1994: Walt Disney Computer Software

Disney established its own in house gaming unit, Walt Disney Computer Software, Inc. (WDCS), and it was incorporated on September 15, 1988. WDCS generally used third-party development studios to design spin-off games using its existing portfolio of characters. WDCS failed to meet the high expectations that came with the Disney name, although three of its self-published computer titles – ''Mickey's Runaway Zoo'', ''Donald's Alphabet Chase'' and ''Who Framed Roger Rabbit'' – sold more than 100,000 copies, the industry equivalent of earning a Gold Record. The underlying issues were later attributed by senior Disney executives as being due to low product quality and lack of understanding of the differences between film and games.

WDCS also published a series of Nintendo (NES) and Gameboy platform game titles with Japanese video game company Capcom. Of these titles, 1989's ''DuckTales'' received the most commercial and critical success, selling approximately 1.67 million and 1.43 million copies worldwide respectively, each becoming Capcom's highest-selling titles for their respective platforms. Produced by founding WDCS producer Darlene Waddington, ''DuckTales'' Gameboy version was named "Gameboy Game of the Year" by ''PC Player Magazine''. ''DuckTales'' continues to be considered a game with high nostalgic interest and was remade in 2013 as ''DuckTales: Remastered''.

Following ''DuckTales,'' WDCS developed and published another NES platform game with Capcom, ''Chip 'n Dale Rescue Rangers''. ''Rescue Rangers'' proved to be a commercial success, selling approximately 1.2 million copies worldwide, becoming Capcom's fourth highest-selling game for the Nintendo Entertainment System. Continuing with the success of these titles, Disney continued to find success with another Capcom developed title, ''Aladdin'' and ''The Lion King'' (developed by Westwood Studios) in 1993 and 1994 respectively. This led to a move from self-developed and self-published to funding and development management of games with third parties published the game.

1994–2002: Disney Interactive

Using the film studio style formula, WDCS was reorganized into Disney Interactive, Inc. (DI) on December 5, 1994 with the merging of WDCS and Walt Disney Television and Telecommunications. On April 15, 1997, Disney Interactive reduced its staff by 20%, effectively ending all in-house video game production. This increased the requests for licensing from third-party games companies. Under this plan, development and production cost risks were transferred to the game companies but reduced the per-unit revenue generated to Disney and effectively yielded a near 100% margin of licensed game sales. A thirteen-game agreement was made between Nintendo of America and Disney Interactive in 1999 for both the Nintendo 64 and Game Boy Color.

In May 2001, the company signed a deal with Sony Computer Entertainment to allow the latter to publish titles based on '' Atlantis: The Lost Empire'', ''Monsters, Inc.'', ''Treasure Planet'', ''Lilo & Stitch'', and '' Peter Pan: Return to Never Land'' on the PlayStation and PlayStation 2.

In European territories, Infogrames formerly distributed several of Disney Interactive's PC titles, however, this agreement was later replaced with several separate distribution deals, including JoWooD Productions in Germany.

2003–2007: Buena Vista Games

In 2003, Disney announced in their 2003 strategic review that they would re-enter the core publishing market and rebranded Disney Interactive, Inc. as Buena Vista Games, Inc. (BVG) The Disney Interactive and Buena Vista Interactive brands were retained as publishing labels for children's and core titles respectively.

On April 19, 2005, Buena Vista Games announced that they had entered the game development market. The company formed Propaganda Games, based in Vancouver, British Columbia; which was made up of former employees at EA Canada, and purchased Avalanche Software in Salt Lake City, Utah for an undisclosed amount. On May 13, 2005, the company announced they had acquired the video game rights to the ''Turok'' franchise from owners Classic Media; which had been previously held by Acclaim Entertainment.

On April 27, 2006, Buena Vista Games entered into a publishing agreement with Japanese developer Q Entertainment where the company would publish four of the developer's titles globally except in Asia; including a Disney-themed version of ''Meteos''. In September, Buena Vista expanded their developer cycle by purchasing Climax Racing from the Climax Group and formed Fall Line Studios in November to create casual titles for the Nintendo DS and the Wii consoles.

2007–2014: Disney Interactive Studios

On February 8, 2007, The Walt Disney Company renamed Buena Vista Games to Disney Interactive Studios as part of a larger company initiative to phase out the Buena Vista brand that year. The studio publishes both Disney and non-Disney branded video games for all platforms worldwide, with titles that feature its consumer brands including Disney, ABC, ESPN, and Touchstone (which is used as a label for Disney). In July 2007, the studio acquired Junction Point Studios.

On June 5, 2008, Disney Interactive Studios and the Walt Disney Internet Group, merged into a single business unit now known as the Disney Interactive Media Group,"Disney's games and internet divisions merging"
, Joystiq.com, 2008. and it merged its subsidiary Fall Line Studios with its sister studio, Avalanche Software, in January 2009. In February 2009, Disney Interactive acquired Gamestar, a Chinese game development company. On September 8, 2009, Disney Interactive announced that it had acquired Wideload Games.

In November 2010, the executive Graham Hopper left the company. He announced his departure via an internal e-mail saying "the time has come for me to move on from the company and set my sights on new horizons."

DIS in October 2012 announced "Toy Box", a cross platform gaming initiative where Pixar and Disney characters will interact from a console game to multiple mobile and online applications. The first Toy Box cross platform game is ''Disney Infinity'' based on the ''Toy Story 3'' game's Toy Box mode crossed with a toy line.

After the purchase of Lucasfilm by The Walt Disney Company in 2012, Disney Interactive assumed the role of developing ''Star Wars'' games for the casual gaming market, while Electronic Arts would develop ''Star Wars'' games for the core gaming market through an exclusive license (although LucasArts did retain the ability to license ''Star Wars'' games to other developers for the casual gaming market).

At E3 2013, Disney and Square Enix released a teaser trailer for ''Kingdom Hearts III'', after going seven years of not declaring any console ''Kingdom Hearts'' game since ''Kingdom Hearts II''. The game would release nearly six years later in January 2019.

Disney Interactive Studios has lost more than $200 million per year from 2008 to 2012 during a period in which it shut down Propaganda Games, Black Rock Studio and Junction Point Studios and its co-president John Pleasants stepped down in November 2013 after the launch of ''Disney Infinity''.

2014–2016: Decline and dissolution

On March 6, 2014, 700 employees were laid off. After the cancellation of ''Disney Infinity'', Disney Interactive Studios closed in 2016.

List of games

The company also publishes games from ''Q Entertainment'' worldwide except Asia: ''Lumines II'', the sequel to the puzzle game for the PSP system; ''Lumines Plus'', a new version of ''Lumines'' for the PlayStation 2; '' Every Extend Extra'', a puzzle shooter; and a Disney Interactive Studios's '' Meteos: Disney Edition'', the popular ''Meteos'' game for the Nintendo DS with Disney characters.

The company revealed a lineup of games at E3 2006, which include DIE's ''Turok'', a re-imagining of the video game series of the same name and '' Desperate Housewives: The Game'', based on the hit television show.

Disney Interactive Studios is credited in all entries to the ''Kingdom Hearts'' franchise, with the original release box art of each entry to the series having different logos and name of the company seeing as coincidentally, the company is re-branded in between the releases. Notably however, the company is not credited to actually developing the game.

Studios

Moved to

Disney Interactive

*Disney Mobile
*Disney Online

Former/defunct

*Avalanche Software, based in Salt Lake City, Utah. Acquired April 2005. Shut down May 2016. Later re-opened and sold to Warner Bros. Interactive Entertainment in January 2017.
*Black Rock Studio, based in Brighton, England. Founded in 1998, acquired in September 2006 and closed in July 2011.
*Creature Feep, founded in 2009, closed in 2015.
*Fall Line Studios, based in Salt Lake City, Utah. Founded in 2006, merged into Avalanche Software in 2009.
*Gamestar, based in China. Acquired February 2009, defunct.
*Junction Point Studios, based in Austin, Texas. Acquired July 2007. Shut down in January 2013.
*Propaganda Games, based in Vancouver, British Columbia. Founded in April 2005, closed in January 2011.
*Playdom, based in Palo Alto, California. Founded in December 2008, acquired in July 2010, closed in 2016.
*Rocket Pack, based in Helsinki, Finland. Founded in 2010, acquired in 2011, closed in 2015.
*Wideload Games, based in Chicago, Illinois. Acquired September 8, 2009. Shut down March 6, 2014.

References

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1988 establishments in California
2016 disestablishments in California
Companies based in Glendale, California
Defunct companies based in Greater Los Angeles
Defunct video game companies of the United States
Disney Interactive
Disney video games
Technology companies based in Greater Los Angeles
Video game companies based in California
Video game companies disestablished in 2016
Video game companies established in 1988
Video game development companies
Video game publishers