Disney announces Nintendo focused Video Game Studio

As a part of the company's ongoing plan to cut back on outsourced game development, The Walt Disney Company, second largest media company in the world, has formed a new videogame studio to create games exclusively for Nintendo Co.

Disney’s game unit on Tuesday announced that it has formed a new videogame studio to create software exclusively for Nintendo Co. Ltd's hand-held DS player and upcoming Wii console.

The studio, called Fall Line, will be based in Salt Lake City and will be headed by Scott Novis. According to official release, Fall Line will now be developing content exclusively for Wii, DS, and GBA.

Adding to the existing list of development studios, Fall Line marks the fourth development studio that Disney has purchased in the last couple of years. Avalanche Software, Propaganda Games, and Climax Racing being the previous three.

According to company CEO Robert Iger, Disney can post increased profits by developing games under its own publishing label rather than by licensing characters and content.

Under the publishing label, Buena Vista Games, Disney has spent an estimated $200 million over the past two years to buy or start game development studios, and another payout of $200 million in the next two years is on agenda.

According to analysts, Disney’s move of taking its game development in-house will provide increased profit for the company as it has a strong line of already-established characters.

With head quarters located in California, USA, The Walt Disney Company was founded in 1923 by brothers Walt and Roy Disney as a small animation studio. Today it is one of the largest Hollywood studios. It also owns eleven theme parks, two water parks and several television networks, including the American Broadcasting Company (ABC).

The first game from Disney to hit Nintendo's new console is Disney's Chicken Little. It is developed by Avalanche Software and is scheduled for release in December.