Disney Interactive Studios, Inc. was an American video game developer and publisher owned by The Walt Disney Company through Disney Interactive. Prior to its closure in 2016, it developed and distributed multi-platform video games and interactive entertainment worldwide. Most of the games released by Disney Interactive Studios were typically tie-in products to existing character franchises. On May 10, 2016, as a result of the discontinuation of its Disney Infinity series, Disney shut down Disney Interactive Studios, and exited the first-party home console game development business in order to focus on third-party development of home console video games through other developers such as Electronic Arts (Star Wars games), WB Games (owned by rival company Warner Bros., which handles the publishing of Disney-related Lego video games and Cars 3: Driven to Win), Bandai Namco Entertainment (Disney Tsum Tsum Festival), Square Enix (Kingdom Hearts), and Capcom (several Disney games, Willow games and Marvel vs. Capcom). However, it continues to release games for iOS and Android devices under its own label, Disney Mobile. History 1988–1994: Walt Disney Computer Software Disney established its own in house gaming unit, Walt Disney Computer Software, Inc. (WDCS), and it was incorporated on September 15, 1988. WDCS generally used third-party development studios to design spin-off games using its existing portfolio of characters. WDCS had little success attributed by senior Disney executives due to low product quality and lack of understanding the differences between film and games. The few market successes were third-party-published games based on major Disney animated features like Aladdin and The Lion King in 1993 and 1994 respectively. This led to a move from self-developed and self-published to funding and development management of games with third parties published the game. 1994–2002: Disney Interactive Using the film studio style formula, WDCS was reorganized into Disney Interactive, Inc. (DI) on December 5, 1994 with the merging of WDCS and Walt Disney Television and Telecommunications. On April 15, 1997, Disney Interactive reduced its staff by 20%, effectively ending all in-house video game production. This increased the requests for licensing from third-party games companies. Under this plan, development and production cost risks were transferred to the game companies but reduced the per-unit revenue generated to Disney and effectively yielded a near 100 percent margin of licensed game sales. A thirteen-game agreement was made between Nintendo of America and Disney Interactive in 1999 for both the Nintendo 64 and Game Boy Color.