Ever since the Walt Disney Company swallowed its Internet-based operations back into the parent company, executives have been strategizing on how to recapture the market.

By the looks of it, they are now making their move.

The Burbank, Calif.-based company Wednesday announced the formation of the Buena Vista Game Entertainment Studio and named 14-year Disney veteran Jan Smith to lead the division.

Smith is expected to split her time between this new venture and her duties as president of Disney Interactive.

The company says it hopes the new business unit will converge new and emerging technologies, such as broadband and wireless, with video consoles, PCs, other technological innovations, and online games.

"As a new addition to our entertainment mix, the Buena Vista Game Entertainment Studio will leverage Disney's content and brands in some very creative and innovative ways while providing interactive and challenging experiences for kids, parents and entire families," says Disney president and COO Robert Iger. "Technological changes are rapidly sweeping over the game industry. This new business unit will position The Walt Disney Company to take full advantage of this evolving landscape by consolidating our existing game activity and aggressively and creatively pursuing new opportunities and entertainment."

Disney is speculating that entertainment game software will continue to be a high-growth business, with retail software sales expected to reach $15 billion this calendar year.

Company execs are pinning their hope on a future where people no longer will have to sit together at a table - or at a single PC or game station - to play a game. They will be able to play and interact across continents and thousands of miles, through a variety of platforms or stations. Unlike most parlor games and even current online games, they need not even speak the same language to play together.

LATEST NEWS

UCSD Plans First Flash-Based Supercomputer
Digging Into N.Y.'s Antitrust Suit Against Intel
Analyst: Sony-Ericsson's Android Bid Is Late
Coupon Site Targets Black Friday, Cyber Monday
Microsoft Sites Up Big in Time Spent Online

"Technology is blurring the lines of traditional entertainment," says Smith. "A variety of online platforms are emerging that will enable people to connect and play games together with a variety of devices - televisions, conventional telephones, wireless phones, PCs, digital set-top boxes and other, future platforms - with the potential of combining all this with television and interactive game content. With games as a key component, interactive entertainment will have a profound and lasting impact on today's entertainment industry."

So far no roll-out dates have been set for any of the new division's products, but it is expected to have strong tie-ins to mainstream Disney movies and promotions.