The Walt Disney Company (DIS) Tries to Turn Things Around in Its Gaming Segment

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) also on the scene

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is an advanced games provider. Its stake in the gaming industry is heavily weighted on sales to the children’s market. The company is keen at turning games that are popular with adults and making them children friendly. For example, the MLB Power Pros is a baseball game that features players that look like toys. It also develops children’s adventure games such as Go, Diego, Go!: Great Dinosaur Rescue. The company has a lock on what kids want and will be tough to toggle out of a large share of the children’s market.

The firm also boasts booming sales and revenue increased by nearly 340% in the last four years. I’d be cautious about buying shares of this firm until it can get operating expenses in order, however. The company hasn’t been profitable since 2011 and looks to be biting off more than it can chew with games development.

Could this turn things around for this segment of Disney?

Releasing Disney Infinity tests Disney’s ability to do more than just release popular movies and theme park rides. The company has been criticized in the past for releasing games that have been more popular with girls than they were with boys, but its new release could change the playing field and give Activision and Take-Two a run for their money. Those companies have proven that once a children’s game has generated some attention, it is easier to keep momentum going by creating a trilogy, than it is to launch a new game. In short, if Disney Infinity catches on, this could be the start of a long and profitable saga.

The article Disney Tries to Turn Things Around in Its Gaming Segment originally appeared on Fool.com and is written by Phillip Woolgar.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends Activision Blizzard, Take-Two Interactive , and Walt Disney. The Motley Fool owns shares of Activision Blizzard and Walt Disney. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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