Disney Discontinues Disney Infinity Video Game Franchise

It cancelled most of its video games initiatives in 2011 (with the closure of developers Propoganda Games, Black Rock and, later, Junction Point), but invested in Disney Infinity, an ambitious project that was meant to grab significant market share in the $1bn toys-to-life sector created by Activision via Skylanders. The results, which can be read here, show that Disney is incurring a $147m charge (£101.75m) charge, essentially writing the line off and cutting its losses. The Disney Infinity toys-to-life game and its accompanying playsets are to be discontinued, with Disney citing a lack of growth in the market and rising development costs as factors behind its decision.

This isn't the end of Disney games, as the company will continue to license its franchises. We'll report back with new details as they become available.

Earlier Disney announced it wouldn't be at E3 this June. Well, it seems that's no longer the plan.

Later in March, Disney Interactive pulled out of E3 2016, but did not explain why.

There are still two more releases coming before Infinity's lights go out.

[The video game] business is a changing business.

The company has said that it will instead be moving to a licensing model, allowing other studios to develop games based on Disney properties without the need for Disney to have a direct hand in their production. It will also close down the game's developer, Avalanche Software.

According to a post by John Blackburn, the SVP & GM of Disney Infinity, "By now you may have heard the news that we have made the hard decision to discontinue production of Disney Infinity".

Disney Infinity released a second installment which focused on Marvel characters before finally releasing a new installment previous year built entirely around Star Wars, with play sets for the original trilogy, prequel trilogy, and Star Wars: The Force Awakens. Nonetheless, these decreases managed to be partially offset by higher licensing revenues when it comes to "Star Wars" and "Frozen" merchandise. In the blog post, Disney executive John Blackburn explained that Disney Infinity was created to "bring the best of Disney storytelling to life", but ultimately the hard decision to shutter the business had to made. You can read the full post below. Disney Infinity was released shortly after Skylanders had proved the viability of the space.

It may have brought a smile on a lot of children's faces, but Disney Infinity is preparing to be gone for good.