RealNetworks to spin off games unit

Days after filing to spin off its Rhapsody music unit, digital entertainment services firm RealNetworks announced plans to do the same with its games business as it continues to streamline costs. According to PCMag.com, a Real spokesperson confirmed following its Q4 earnings call Thursday that the company will spin off its games division, adding it will also discontinue unprofitable lines of business. RealNetworks will instead emphasize its carrier-focused software as a service business as well as its RealPlayer consumer efforts.

RealNetworks reported a Q4 net loss attributable to shareholders of $13.3 million, compared to a net loss of $240.5 million a year earlier--games revenues slipped 9 percent to $30.7 million, and music revenues fell 14 percent to $37.6 million. Fourth-quarter revenue totaled $145.5 million. President and acting CEO Bob Kimball blamed the recession for the losses: "While we don't expect that overall trend to change in the first quarter, we are aggressively moving to transform RealNetworks into a more simple and focused company that delivers value to its shareholders," he said in a prepared statement.

On Thursday, RealNetworks announced an agreement with Sprint to streamline the operator's mobile music offerings by introducing a unified digital storefront promising user-friendly access to ringtones, ringbacks and full-track downloads. Per terms of the partnership, Real's end-to-end Media Entertainment Platform will manage, administer, market and deliver Sprint's digital music content--the proposed storefront will premiere later this year.

For more on RealNetworks' proposed games spinoff:
- read this PCMag.com article

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