Fall Line Studio, based in Salt Lake City, will develop games based on Disney's characters, television shows and entertainment franchises, as well as create new intellectual property.
The company will function as a sister operation to Buena Vista Games' Avalanche Software studio.
Fall Line Studio will be a "centre of creative excellence" which Disney hopes will help to expand its market share on Nintendo platforms, according to Graham Hopper, senior vice president and general manager of Buena Vista Games.
Scott Novis, vice president and general manager of Fall Line Studio, added: "The opportunity to grow a new studio for Buena Vista Games after success with Rainbow is right in line with my goal to create great games for the mainstream."
Buena Vista Games has experience in creating games for Nintendo platforms, and is the number three publisher of Nintendo Game Boy Advance titles in North America.
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