Videogames, once the bane of Hollywood studios, are making a comeback—and Disney appears to be leading the pack, reports Portfolio. Facing flat box-office sales, dwindling DVD revenues, and fickle TV audiences, the entertainment industry is seeking better ways to make a buck. That means revisiting the lucrative game market and investing big in original content.
Disney, which recently established a games division, may triple its budget to $350 million by 2012. “If we want to invest in new customers via videogames, we have to do it ourselves,” says Disney’s division chief. Paramount, Universal, MTV, and Warner Bros. are spending millions to follow suit. The result for consumers? Better games, not just more licensed duds like Iron Man and Wall-E.