Disney Interactive Cutting Nearly 700 Jobs

Jack sparrow disney infinityDisneyDespite the success of last year’s ‘Disney Infinity,’ the video game and mobile division continues to lose money.

Disney Interactive will lay off nearly 700 people, according to The New York Times.

That’s 26% of the video game and Internet division.

James A. Pitaro, Disney Interactive president, says the major cuts come as the company searches for new ways to make the Interactive segment profitable.

“These are large-scale changes as we focus not just on getting to profitability but sustained profitability and scalability.”

To do this, Disney is going to step away from developing in-house games start searching for new partners and rely on outside licensing.

As we’ve noted in the past, Disney’s Interactive segment is the one that continuously fails to be profitable.

Despite the enduring success of Disney’s latest game Disney Infinity, other title releases from 2013 including “Where’s My Water,” a mobile puzzle game, were disappointments.

Compare Disney Interactive’s first quarter revenue and operating income with the rest of the company.

Maybe they should have held onto LucasArts.

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