The Walt Disney Co. confirmed Thursday that it has bought Tapulous Inc., the Palo Alto, Calif., developer of the Tap Tap Revenge series of iPhone games.

The deal is Disney's first acquisition of a company devoted solely to developing apps for Apple Inc.'s iPhone, iPod Touch and iPad, said Steve Wadsworth, president of Disney Interactive Media Group.

"It reinforces that we see the entire mobile space as a huge long-term growth opportunity," Wadsworth said. "iPhone is a critical component of that."

Tapulous' games have been downloaded 35 million times and are some of the most popular iPhone games. An estimated one-third of all iPhone users have downloaded the company's music games, which feature hundreds of songs from artists including Lady Gaga and Metallica.

The original Tap Tap Revenge game, pictured on the right, sells for $1.99 in Apple's iTunes store. The most recent version, Tap Tap Revenge 3, is free and comes with 100 songs, but additional song packs cost 99 cents to $2.99.

Tapulous was funded by a number of Silicon Valley heavy hitters, including Sun Microsystems co-founder Andreas von Bechtolsheim and Salesforce.com Chief Executive Marc Benioff.

-- Alex Pham

Russians love Shrek. And Russians love the acorn-obsessed squirrel Scrat from "Ice Age." But Russians aren't showing a lot of love for Buzz and Woody.

"Toy Story 3," released June 18, has been a blockbuster success in the U.S. and most of the foreign countries where it has opened, racking up $244 million at the box office domestically and more than $100 million overseas, including more than $34 million in Mexico.

But the Pixar Animation Studios sequel has posted surprisingly low box-office results in Russia, one of the hottest international markets for movies, especially for animated films. The critically acclaimed, computer animation sequel has generated only $4.8 million in ticket sales through its first 10 days at Russian theaters, according to three people who have seen the figures.

By contrast, "Shrek Forever After" grossed $37.7 million in its first 10 days in Russia in May. Last summer, "Ice Age: Dawn of the Dinosaurs" collected about $35 million over the same period.

People familiar with the Russian movie market point to a variety of factors that have hurt the movie, including unseasonably warm weather that sent many children fleeing the oppressive heat of cities to stay with relatives in the cooler countryside. But perhaps the crucial reason, they say, is that Russians are unfamiliar with the beloved story and characters because the first two "Toy Story" movies were released in the 1990s, before the country's recent explosion in theater growth.

"People here didn't grow up seeing the first two movies, so they think a film about toys is just for young children," said Paul Heth, chief executive of Russian theater chain Kinescope. "Everyone in the market here is a bit shocked at what the film has done, given its quality."

A spokesman for distributor Walt Disney Studios wouldn't confirm Russian box office totals for "Toy Story 3," and declined to comment.

Russia is still a relatively small movie market, with only about 2,100 screens for a population of 142 million people. The U.S. has nearly 40,000 screens for 307 million people. But after being decimated following the fall of the Soviet Union, the theatrical movie business has grown 20-fold since 2000, according to the site kinobusiness.com, to $736 million in 2009.

Disney has never had much luck with Pixar films in Russia, though "Toy Story 3" has fared even worse than average. 2009's "Up" and 2008's "Wall-E" both grossed about $12 million in the country. 

"Shrek Forever After" and "Ice Age: Dawn of the Dinosaurs" each collected about $45 million at the box office before their runs ended in Russia.

"Disney overall has done well in this market," said Heth, pointing to a strong $21-million run for "Prince of Persia." "But Pixar has never managed to break out here."

-- Ben Fritz

Photo: A scene from "Toy Story 3." Credit: Disney/Pixar

After the coffee. Before a moment of sadness over Detroit closing two parks I played in as a kid.

See ya, Showtime. Bob Greenblatt, the head of pay cable channel Showtime, is making his exit. Greenblatt, a veteran of Fox and his own production company, oversaw Showtime's emergence as a programming force with original series such as "Nurse Jackie," "Dexter" and "Californication." In line to take the Showtime gig is another respected executive: David Nevins who stepped down as head of Imagine TV ("24," "Friday Night Lights," Arrested Development," "Parenthood") Thursday. As for Greenblatt, his name has been bandied about for a big job at NBC after its merger deal with Comcast closes, but we'll just have to see about that. Deadline Hollywood broke the news about Nevins leaving Imagine. Variety broke the news about Greenblatt leaving and Nevins likely succeeding him. And I link to the Los Angeles Times as well because, well, I'm a homer. 

A new Night. Director M. Night Shyamalan, who hit his first couple of movies out of the park ("The Sixth Sense," "Unbreakable") before hitting a slump ("The Happening") is back with "The Last Airbender." But this time he's got some backup from some unusual sources -- Nickelodeon and McDonald's. The movie is based on a Nickelodeon cartoon and is a step away from his supernatural stuff. "For the last 10 years, I've been working in a cottage industry of the supernatural," said Shyamalan. "And I've always had my eye on doing a franchise," he told Claudia Eller of the Los Angeles Times. 

Put a hold on box-office futures trading. The House-Senate conference committee hammering out the bill on financial reform that was approved Thursday night included a ban on the creation of a box-office futures trading market. This likely puts a fork in the plans of the two companies behind the plans for an exchange, although one says the fight will go on. Details from the Hollywood Reporter and the Wrap.

Hit the pause button. Apparently NBC Universal and Comcast are having a hard time getting their paperwork together. The Federal Communications Commission is complaining that neither answered all the questions the agency sent the two companies as part of its review of the merger deal. Comcast said its issues were "technical." No word what NBC Universal's issues were. The FCC said it would resume its review as soon as it gets more info. Broadcasting & Cable has the story.

Watching Hulu on a PlayStation. Yes, it could become a reality! Bloomberg reports that Sony Corp. is putting the finishing touches on a deal in which its users could access Hulu via the PlayStation network. Obviously, getting into the video game consoles could mean a bigger audience for Hulu and create yet another option for people wanting content but don't want cable. But I'm a little jaded about all the Hulu coverage when its own future has lots of questions. (What will Comcast do with NBC's stake after their deal closes and will the pay model work?) The Wall Street Journal updates Hulu's pay plans. 

A different Current. The Hollywood Reporter takes a probing look at Current TV, the news and public affairs cable network started by Al Gore that originally was going to subsist primarily on user contributions. Last year, after efforts to either sell (no takers, not even Google, says THR) or go public stalled out, former MTV executive Mark Rosenthal was brought in as chief executive, and he's now reaching out for help from his old pals, including Brian Graden, the former MTV programmer who is consulting Current. On the business side, Current's next big challenge is renewing its distribution deal with Time Warner Cable, the nation's second-largest cable operator. Fortunately for Current, Comcast, the country's biggest cable operator, has a stake in it.

More of the same. The Daily Beast's Rachel Sklar says the country may be getting more diverse but cable news isn't.

Inside the Los Angeles Times: Dave Smith may know more about Disney than anyone named Disney. The Weinstein Co. may have taken care of some debt headaches, but is the short-term fix enough for the art house to turn around? Looks like another big weekend for "Toy Story 3."

-- Joe Flint

Now with 70% more sarcasm. Follow me on Twitter: Twitter.com/JBFlint

"Toy Story 3" had the biggest opening day of all time for an animated film -- but not the biggest-ever opening weekend.

Within a few weeks, a comparison of its $41-million Friday to its estimated $109-million weekend could be a meaningless blip in the context of an awesome box-office run. Or it could be the first indication of a relatively short life in theaters for a Pixar movie.

In the past, Pixar pictures ultimately have grossed, on average, slightly more than four times their opening-weekend take in the U.S. and Canada. If the same holds true for "Toy Story 3," it will end up at about $450 million. That's more than $100 million higher than "Finding Nemo," previously the biggest Pixar movie, and just a bit above the most successful animated movie of all time, "Shrek 2," which finished its domestic run at $441 million (grosses are not adjusted for inflation).

All indications are that word-of-mouth, usually the most important driver of a movie's box-office longevity, is fantastic. The average audience grade was A, according to market research firm CinemaScore, and reviews were uniformly positive. Studies of Twitter traffic conducted by Walt Disney Studios indicated that enthusiasm among some fans was so high that they had already seen "Toy Story 3" twice.

"I believe this will ultimately not only be the highest opening for a Pixar film, but the highest total gross," said Chuck Viane, Disney president of distribution.

The reason the record opening day for "Toy Story 3" didn't translate to a record weekend, however, was that ticket sales declined from Friday to Saturday, which was unusual for an animated family film. Much of that can be attributed to the nearly $4 million that the movie grossed in midnight shows early Friday morning. It's extremely rare for an animated picture to get any money from late-night screenings, but "Toy Story 3" drew a significant crowd of adult fans loyal to the 15-year-old franchise.

Even without the midnight shows, however, the $37-million Saturday gross of "Toy Story 3" was essentially flat compared with Friday. Every previous Pixar movie save one has seen a rise in ticket sales on its second day in theaters. The exception, "Wall-E," ultimately grossed 3 1/2 times its opening-weekend take -- an excellent ratio for most movies but the lowest ever for Pixar.

"Toy Story 3" faces an additional challenge in that it will lose many of its 3-D theaters, which have accounted for about 60% of the movie's opening-weekend gross, in two weeks when "The Last Airbender" opens -- and even more theaters the week after that, when "Despicable Me" debuts.

Of course, it's normal for sequels to well-known series to garner a higher proportion of their box-office revenue on opening weekend, since audiences know what they're getting and don't need to wait to hear the buzz. Even if "Toy Story 3" has a short run for a Pixar film, it's virtually certain to gross more than $300 million in the U.S. and Canada and about the same amount or more overseas, making it a success by any measure.

For more on the opening on "Toy Story 3," "Jonah Hex" and "Cyrus," see our initial box office post.

Here are the top 10 movies at the domestic box office this weekend according to studio estimates and Hollywood.com:

Remember Oswald? Most people don’t. He was Mickey Mouse’s older brother, created by Walt Disney in the 1920s. Disney left behind Mickey’s obscure sibling in 1928 in a bitter contract dispute with his publisher.

Swearing never again to lose the rights of his characters, Disney’s insistence on complete control went on to become legend.

Fast forward 78 years to 2006. The Walt Disney Co. regained the rights to Oswald. How? Disney Chief Executive Bob Iger had made a swap: "Monday Night Football" announcer Al Michaels for the black-and-white mouse. When ESPN became the new home of "Monday Night Football," Michaels wanted to go to NBC to be part of its Sunday football package. 

Many assumed the trade was done to smooth out a historical wrinkle. This week, Iger revealed he had other plans in the back of his mind. Oswald was to be reunited with his younger brother in an unusual video game called Epic Mickey.

[For the record: An earlier version of this post incorrectly referred to Oswald as a mouse. Oswald is a rabbit. Disney is describing Mickey and Oswald as brothers for the purpose of the video game.]

Slated for release later this year, the game gives Oswald a starring role as ruler of Wasteland, a misshapen cartoon world that Mickey had inadvertently devastated. We find Oswald, steeped for years in resentment over his younger brother’s meteoric rise.

In the game, the player assu

mes the role of Mickey, trapped in Wasteland, a strange parallel cartoon world inhabited by rejected and forgotten Disney cartoon characters. As Mickey, the player has to decide what he must do to correct his mistake.

Oswald’s journey from basement filing cabinets at Universal to Disney and into the game started in 2004, when the head of Disney’s video game unit, Graham Hopper, decided to pull the plug on future Mickey games after a string of poorly performing titles.

“We weren’t happy with the quality of the titles,” said Hopper, who asked a team of developers to rethink the company’s approach to games featuring Mickey.

They came up with a bold concept: Put Mickey in a dark world inhabited by Oswald. They showed the concept to Iger, who immediately set about acquiring the rights to Walt Disney’s first animated character.

“It’s a family reunion," Hopper said, then adding with a wink, "That's why it's epic."

If you think Oswald is angry, think how Al Michaels felt when he learned he was traded for a mouse.

-- Alex Pham

When Tron: Evolution hits shelves this November, it will be on the front end of one trend in the video game industry and the tail end of another.

Walt Disney Co.'s game will be released in digital, or "stereoscopic," 3-D for the PlayStation 3. It's one of the first games released with the new technology that has become so popular in Hollywood after the success of James Cameron's movie "Avatar."

The game serves as a prequel for Disney's December movie "Tron: Legacy," which will be in 3-D as well. Video games based on new movies have become rarer as publishers focus more on properties they own. For much more on the trend and what it means for the movie and game industries, see the story in Tuesday's Times.

With game budgets already frequently exceeding $20 million, 3-D is an extra investment that makes the stakes for their success even higher. Sony Corp., maker of the PlayStation 3, is expected to promote 3-D in a press conference on the first day of the E3 industry conference Tuesday. 3-D has been a top priority for the Japanese electronics giant on a variety of its devices, including televisions, cameras and the video game console.

It is likely to unveil several upcoming 3-D games that it is producing. On Monday, Electronic Arts announced that its upcoming action game Crysis 2 will be released in 3-D for the PlayStation 3, PC and Microsoft's Xbox 360.

In the case of Tron, Disney-owned development studio Propaganda Games has a team that has ranged  between 15 and 20 people working for about five months to add 3-D elements to the game.

Given the minuscule number of televisions bought by consumers so far that are capable of displaying 3-D images, it's an investment that won't immediately pay off.

"There's obviously an initial cost in developing any new technology and 3-D is no different," said Darren Hedges, head of Propaganda. "Disney has been very cognizant of embracing new 3-D technology with movies like 'Alice,' with ESPN and with video games. We want to be a leader and we want to make sure we do it right the first time."

In the case of Tron: Evolution, players with a PlayStation 3 and a 3-D television will see soaring discs, "light cycles," and other weapons and vehicles from the game popping out of their screens. However, the actual content in the 3-D game, Hedges said, will be virtually identical to the standard version of the game.

As prices fall and more compatible devices come to homes, Hedges predicted, 3-D will become common in video games, particularly for the action and sports genres.

That could make for an unusual sight in the office of many game production studios.

"Bizarrely, yes, there are developers wearing 3-D glasses around our offices all day," Hedges said.

-- Ben Fritz

Photo: A scene from Tron: Evolution. Credit: Disney Interactive Studios.

After the coffee. Before deciding what movie not to see this weekend.

Keep those funny glasses on during the commercials! Walt Disney Co.'s ESPN has persuaded three advertisers -- Procter & Gamble, Sony Corp. and its sister production company Pixar -- to make 3-D commercials for the Friday debut of the sports cable powerhouse's new channel. ESPN 3-D, which will open with coverage of the World Cup, is available in about 50 million homes, but the number of consumers with 3-D television sets is minuscule. The Wall Street Journal's advertising ace, Suzanne Vranica, says producing such spots can easily cost more than $1 million. It won't be an easy sell. "There will be a high hurdle to get 3-D commercials through in a period of time when advertisers are increasingly scrutinizing" the production side of the ad business, Brad DeHart, practice leader of marketing services at ICG Commerce, told the WSJ. Meanwhile, Sony unveiled some of its 3-D TV plans. More on that from Variety.

I pity the writers. 20th Century Fox's "The A-Team" had 11 writers over the course of its development. That's right, it took almost a dozen people to make a script based on an old TV show known more for its explosives than its explosive dialogue. Anyway, in the end only three writers are getting credit. Deadline Hollywood has the back story on the messy making of a movie and who should take the blame. Of course, if it's a hit, then the system worked!

Wait until this weekend. Time magazine's Richard Corliss weighs in with his take on the box office drought, which seems unlikely to improve this weekend. Best observation from him: "The joke is that Hollywood has become so sequel-dependent, it has forgotten how to make new hits."

Don't answer that phone! It's probably Jerry Brown or Meg Whitman calling. With the race for governor set (and it looks better than most of the summer movies), Variety says the two candidates are lining up their Hollywood backers and hope to be lining their campaign coffers. Brown, no stranger to Hollywood (or anyone for that matter) counts Steven Spielberg and Jeffrey Katzenberg in his camp. Whitman has Terry Semel and Harry Sloan in her corner.

Covering up the spill. Media trying to cover the Gulf Coast oil spill are hitting road blocks. The New York Times says that not only is BP making access for journalists and photographers tough, but local and federal government isn't helping much either.

ABC wraps up upfront. ABC became the latest network to finish selling advertising for the fall television season. Although folks close to the network were touting taking in $2.4 billion, that figure covers not only prime time, but late night, news, daytime, etc. Advertising Age and the Los Angeles Times note that with ratings being down at ABC last season and the network selling more ad inventory than it did in the 2009 market, ABC may not have as much to boast about as is being spun. 

More exits at OWN. The well-regarded Liz Dolan, a former Nike executive who was a big hire for the Oprah Winfrey Network is the latest to exit the channel that has seen too many changes in its leadership ranks to keep up with. Oh, and it hired a few more programming people. Anyone want to take bets on the over/under on how long they'll last? More on the hires and less on the exits from the Hollywood Reporter.

Inside the Los Angeles Times: New Producer's Guild President Mark Gordon talks credits."Tropic Thunder" producer Les Grossman may be a great, but a whole movie about him? Monday's Comcast-NBC hearing offered many lessons, most of them wrong.

--  Joe Flint

Hollywood, Washington and snark all in one twitter feed. Follow me at: Twitter.com/JBFlint

Updated 3:30 p.m. Wednesday: ESPN issued a statement, confirming that it will close its ESPN Zone sports-themed restaurants in Baltimore, Chicago, New York, Las Vegas and Washington, D.C., on June 16. The Los Angeles and Anaheim locations will remain open and operated by AEG and Zone Enterprises of Anaheim, respectively.

"A decision like this is never easy. The ESPN Zones have served as a terrific experience for fans
across the country, but remain a long-term business challenge," ESPN Senior Vice President Rick Alessandri said in a statement.

The ESPN Zone sports bars opened in 1998 to capitalize on ESPN's brand, while bringing Disney's clean, family-friendly sensibilities to the sports bar concept. The upscale joints served burgers and brews as walls of big-screen TVs beamed baseball and other sporting events into the dining area. Separate gaming rooms, dubbed "Sports Arenas," provided access to interactive games, such as virtual golf and boxing. It would not be uncommon to see children and adults shooting free throws side by side in the Zone.

It's unclear what prompted Disney to close the establishments, although the bars may well be a casualty of the recession. A poll released in March by AlixPartners found that 30% of consumers planned to eat out less frequently, and spend less per meal than they did the year before.

In addition, some of the ESPN Zone restaurants were located in high-priced real estate areas, such as Times Square in New York.

"Since their inception, the Zones have served sports fans very well," said an ESPN spokesman, who declined further comment. "But from a pure business perspective, the economics have been challenging."

Harry Balzer, chief industry analyst for researcher the NPD Group, said the restaurant business is undergoing its biggest decline in three decades.

"This year was horrible," Balzer said. "A restaurant meal is a very discretionary behavior. You could always eat at home and save money doing it. And going out for dinner is the most expensive food you could buy."

Balzer said casual dining restaurants like the ESPN Zone have been among the hardest hit, as consumers gravitate to less expensive chains such as Chipotle or Panera Bread, which offer sit-down dining at fast-food prices. ESPN may also have suffered from the problem that afflicted Planet Hollywood -- the novelty simply wore off, he said.

"We love the newness of something," Balzer said. "ESPN had something new. But after a while, there was nothing new. We were here with Planet Hollywood. How many times can you see Marilyn Monroe’s dress?"

In addition to Anaheim, Disney operates ESPN Zones in Baltimore, Chicago, Las Vegas, New York City and Washington. The company licenses the ESPN Zone to a restaurant at L.A. Live. Disney closed the Atlanta and Denver locations last year.

-- Dawn C. Chmielewski

Photo of sports fans watching the controversial new Tiger Woods Nike advertisement from the ESPN Zone in New York's Times Square. (Photo by Mario Tama / Getty Images)

After the coffee. Before figuring out how long until the Yankees get Strasburg.

Two and a half networks down. CBS said Tuesday it was done selling advertising inventory for the 2010-11 television season. The most-watched network joins Fox and the CW in wrapping up the so-called upfront advertising sales season. ABC and NBC expect to be done in the next few days. In terms of dollars, estimates of what CBS sold in commercials ranges from $2.2 billion to $2.6 billion. Fox sold about $1.9 billion while the CW sold around $375 million. More on the deal-making from Advertising Age, Bloomberg and the New York Times.

Hollywood made its bed. The disappointing start to the summer movie season is a sign of the chickens coming home to roost, says IndieWire's Anne Thompson. As studio executives continue to back projects that are pre-sold (a book, an old TV show, a toy, etc.) the product becomes bland and the audience gets bored. You know the rest. Of course, to buck that trend someone actually has to use their gut in making a decision and try to back something that might actually intrigue viewers instead of just serving them the same old stuff. Who will be this brave executive? 

So what is Sandy's next movie? With an Oscar in her purse, a bad marriage fading in her rear-view mirror and a smash appearance at the MTV Movie Awards, eyebrows were raised when word surfaced that Sandra Bullock's next movie would be another romantic comedy with Ryan Reynolds. But although she is involved in "Most Wanted," word from her camp is that it is not her next movie. The Los Angeles Times' Steven Zeitchik on what's going on with Sandy.

No booyah here. ESPN is closing the bulk of its ESPN Zone restaurant chain, reports the Los Angeles Times. Aimed at sports fans but offering a family-friendly atmosphere, the restaurants were usually in high- rent districts (New York's Times Square) and had pricey (in comparison to dive sports bars) menus.

Web ratings rise. Web viewing, normally a daytime phenomena, is on the rise in the evening. The Wall Street Journal says evening viewing in March was up 14% to 62.4 million, while daytime Web viewing was up only 1% to 45.4 million. Of course, what we don't know is how many people watching the Web in prime time were also watching television.

King for a week. CNN's aging and fading talk-show host Larry King enjoyed a ratings renaissance last week, thanks to interviews with President Obama, Lady Gaga and Bill Gates and plenty of hype around King's 25th anniversary. The New York Times, which is obsessively following King's ratings, provides analysis. Meanwhile, the Lakers-Celtics series is scoring, with USA Today noting that the NBA Finals are off to their strongest start since 2004.

Inside the Los Angeles Times: Susan King profiles Mike Nichols. Henry Winkler has managed to have a life and career post-Fonzie.

-- Joe Flint

Come see what everyone's talking about. Follow me on Twitter at: Twitter.com/JBFlint

The Walt Disney Co. is shutting down most of its ESPN Zone stores, a chain of sports-themed restaurants located in seven cities, according to a person familiar with the matter. The only outlets to remain open are those tied to a Disney property, such as the Downtown Disney shopping district in Anaheim.

The ESPN Zone sports bars opened in 1998 to capitalize on ESPN's brand, while bringing Disney's clean, family-friendly sensibilities to the sports bar concept. The upscale joints served burgers and brews as walls of big-screen TVs beamed baseball and other sporting events into the dining area. Separate gaming rooms, dubbed "Sports Arenas," provided access to interactive games, such as virtual golf and boxing. It would not be uncommon to see children and adults shooting free throws side by side in the Zone.

It's unclear what prompted Disney to close the establishments, although the bars may well be a casualty of the recession. A poll released in March by AlixPartners found that 30% of consumers planned to eat out less frequently, and spend less per meal than they did the year before.

In addition, some of the ESPN Zone restaurants were located in high-priced real estate areas, such as Times Square in New York.

"Since their inception, the Zones have served sports fans very well," said an ESPN spokesman, who declined further comment. "But from a pure business perspective, the economics have been challenging."

Harry Balzer, chief industry analyst for researcher the NPD Group, said the restaurant business is undergoing its biggest decline in three decades.

"This year was horrible," Balzer said. "A restaurant meal is a very discretionary behavior. You could always eat at home and save money doing it. And going out for dinner is the most expensive food you could buy."

Balzer said casual dining restaurants like the ESPN Zone have been among the hardest hit, as consumers gravitate to less expensive chains such as Chipotle or Panera Bread, which offer sit-down dining at fast-food prices. ESPN may also have suffered from the problem that afflicted Planet Hollywood -- the novelty simply wore off, he said.

"We love the newness of something," Balzer said. "ESPN had something new. But after a while, there was nothing new. We were here with Planet Hollywood. How many times can you see Marilyn Monroe’s dress?"

In addition to Anaheim, Disney operates ESPN Zones in Baltimore, Chicago, Las Vegas, New York City and Washington. The company licenses the ESPN Zone to a restaurant at L.A. Live. Disney closed the Atlanta and Denver locations last year.

-- Dawn C. Chmielewski

Photo of sports fans watching the controversial new Tiger Woods Nike advertisement from the ESPN Zone in New York's Times Square. (Photo by Mario Tama / Getty Images)