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Warner Bros. Sees Profit Decline With Tough Arkham Asylum Comparison

Rocksteady's Batman: Arkham Asylum was a major performer for parent Warner Bros. in 2009, but this year it's helping to create a challenging year over year comparison for the company in its third quarter.
Rocksteady's Batman: Arkham Asylum was a major performer for parent Warner Bros. in 2009, but this year it's helping to create a challenging year over year comparison for the company in its third fiscal quarter. As Warner Bros. represents the "filmed entertainment" segment within giant Time Warner, Arkham Asylum and strong-performing theatrical releases from last year led to a 28 percent profit decline to $209 million for this year's third quarter. The company's films last year included The Hangover and Harry Potter and the Half-Blood Prince, and it also had Inception in the prior quarter. Warner Bros.' sales were flat at $2.8 billion. Time Warner saw a strong quarter overall, however, with revenues up 2 percent year over year to $6.4 billion thanks to its Networks segment, profit up 5 percent to $1.4 billion thanks to its Networks and Publishing groups. Warner Bros. co-published Batman: Arkham Asylum alongside Eidos last year in North America, and the title received notable critical acclaim and several awards and nominations. As of February 2010, it had sold over 3 million units. Following the title's success, Warner Bros. went on to acquire Rocksteady Studios early this year, calling the Arkham franchise "a key focus" for the company. A sequel, Batman: Arkham City is in the works, slated for release late in 2011.

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