The crowded arena of “Toys To Life” video games had its first major casualty this week, as Disney announced that they have cancelled their Disney Infinity franchise due to decreasing sales. While the initial launch of the original game was promising in terms of revenue, it appears that further expansions were far less successful, ultimately leading to this decision. Disney also announced that they would be shutting down Avalanche Studios, which had been their game publishing division, and getting out of video game development entirely. Instead, the plan is to license Disney’s properties (which include the Marvel and Star Wars franchises) out to third parties in order to create new games in the future.
Disney informed investors that cancelling Infinity would cost the company $147 million, and shuttering Avalanche will result in over 300 employees being laid off.