By Lisa Richwine and Malathi Nayak

Tue Jun 11, 2013 7:15am EDT

(Reuters) – When Walt Disney Co introduced a latest video game, Infinity, to a gaming true this week during a annual E3 gaming conference, it rented a Los Angeles film museum to uncover 30-minute clips of arriving films and hosted a celebration with a glitz it customarily pot for a blockbuster film wannabes.

It shows usually how many a association is counting on Infinity – whose players can for a initial time brew together characters from Disney’s opposite franchises – to assistance spin around one partial of a media hulk that stubbornly refuses to spin a profit.

Since it was combined in 2008, Disney’s interactive division, that houses a video diversion and online properties, has chalked adult waste in 13 of a 14 quarters, compiling $1.1 billion in sum handling waste in that time.

The multiplication will expected not spin a distinction this mercantile year finale Sep 30 as a outcome of a association loitering Infinity by dual months, Disney CEO Bob Iger told analysts on an gain call in May.

“We trust in Infinity,” Iger pronounced during a call. “We consider it will be a good product and it’s going to expostulate profitability.”

It took some-more than 3 years and around 200 people to emanate Infinity, according to John Blackburn, who heads Avalanche Software, a Disney-owned studio that combined a game. Disney would not contend how many it spent to emanate a game, that is scheduled for recover on Aug 18.

In a game, players can array characters from Disney or Pixar cinema opposite any other, such as a competition between a super-charged racecar Lighting McQueen from “Cars” and quick-footed 10-year aged superhero Dash from “The Incredibles.”

It is Disney’s answer to Activision Blizzard’s Skylanders games, that lets players collect movement total that they can send on practical action-adventure quests in a enchanting universe called Skylands. The diversion was one of 2012’s top-selling games with some-more than $1 billion worldwide in sell sales.

The launch will exam Disney’s vaunted selling troops, who can holder out strike cinema and adorned thesis park rides yet have nonetheless to work their sorcery to emanate many gaming hits. One reason is that many of a characters are some-more renouned with girls than boys, who make adult a infancy of diversion players.

Disney also invested heavily in console games, usually to see sales of normal boxed games decrease and consumers group instead to games played on dungeon phones or amicable networks like Facebook.

To revamp a interactive unit, Iger in 2010 tapped former Yahoo Inc executive James Pitaro and John Pleasants, conduct of a amicable games builder Playdom that Disney had acquired for $563 million, as co-presidents.

Pitaro and Pleasants cut costs by layoffs, redesigned a Disney.com website, and speedy their creators to rise new characters. They had a teenager strike with an alligator named Swampy that stars in a mobile diversion “Where’s My Water?” that has been downloaded some-more than 200 million times.

Pleasants jettisoned many of a console projects. He told a interactive group that a slight concentration on dual to 3 core titles would be improved than operative on 75 or some-more titles, according to Blackburn.

“We have unequivocally sloping a beam in a really opposite way,” Pleasants pronounced in an interview, “trying to get a expansion dollars and a appetite focused on where a stream is using fastest and where a expansion is.”

The unit’s waste narrowed to $54 million final quarter, about half of where they were when Pleasants and Pitaro started.

Industry experts mostly approve of Disney’s strategy. Targeting a company’s buttress marketplace of 6- to 12-year-olds allows it to take advantage of a built-in fan bottom for a characters and to foster them with a movies, TV shows and thesis park rides.

Disney will recover dual cinema from that it gets diversion characters – “Monsters University” on Jun 21 and “The Lone Ranger” on Jul 3 – in a months before a Infinity launch.

It does, though, need to deflect off Activision, a widespread force in a same video diversion universe in that Infinity hopes to compete.

“You never wish to bonus a ability of Disney to sell things branded with their characters,” pronounced Cowen Co researcher Doug Creutz, “but we do consider it will be an ascending climb.”

(Reporting by Lisa Richwine and; Malathi Nayak; Edited by Ronald Grover and Richard Chang)