Warner Brothers reaction to Disneys offer.

Last week, the biggest news in entertainment was surely Walt DisneyWalt Disney Corporation announcing its $4 billion acquisition offer for Marvel Entertainment. If successful, the deal gives Disney Interactive Studios access to some 5,000 new characters with which to integrate into games (X-Men, Spiderman, Ironman just to name a few). But Marvels longtime rivals DC comics are right on their heels.

Warner Bros. Entertainment, parent company of DC Comics, has announced the establishment of DC Entertainment, a new company designed to better leverage DC Comics' IP across a breadth of media, including games, TV, and movies. No new projects were announced as part of the reorganization.

"Based on the great success we've had working with DC Comics to create some of the most popular and successful superhero films of all time, I've long believed that there was much more we could do across all of Warner Bros.' businesses with this great body of characters and stories," Warner Bros. Pictures Group president Jeff Robinov said in a statement. "The prioritization of DC and the creation of DC Entertainment is a great opportunity that reaches far beyond the film group."

The division will be led by Diane Nelson, who previously served as president of Warner Premiere, a studio-based production company. Nelson's credits also include representing Warner Bros.' interest in J.K. RowlingJ.K. Rowling's Harry Potter franchise. Current DC Comics president Paul Levitz, best known for writing many classic DC characters, including Batman and Wonder Woman, will transition to a role as contributing editor and consultant with DC Entertainment.

The move comes following the success of Warner Bros. Interactive Entertainment, Eidos, and Rocksteady's Batman: Arkham Asylum, which debuted to glowing reviews on the Xbox 360 and PlayStation 3 on August 25. (A PC edition is expected later this year.) According to the los Angeles Times, Arkham Asylum has sold nearly 2 million units since launching less than a month ago.This may not seem much in comparison to other media such as record labels and DVD's, but the revenue generated by selling video games is another story all together as videogames retail at an average $40.