Disney shutters "Disney Infinity" video game business

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Just over one month after Disney discontinued support for "Disney Infinity 3.0" on Apple TV, the company on Tuesday announced plans to abandon Disney Infinity altogether, citing poor financials.

Disney informed stockholders of its decision in today's quarterly earnings report (PDF link), noting the shut down of operations will result in a $147 million charge against company revenue for the second fiscal quarter of 2016.

Disney Infinity launched in 2013, the result of a partnership between Avalanche Software and Disney's in-house publishing studio. Utah-based Avalanche will close its doors as part of the deal. The hybrid game system plays on various Disney franchises and features a mix of software and physical elements, the latter being collectible figures released in "waves." The most recent release, "Disney Infinity 3.0," introduced characters from "Star Wars," ""Inside Out" and the Marvel universe, among others.

"By now you may have heard the news that we have made the difficult decision to discontinue production of Disney Infinity," Disney Infinity SVP and GM John Blackburn said in a blog post. "From the beginning, Disney Infinity was built for you— our fans— and I wanted to take a moment to thank you not just for your support over the years, but for creating a community that made Disney Infinity more than just a game."

An Apple TV version of "Disney Infinity 3.0" debuted last November, with purchasing options including a pricey starter kit that came with Apple's fourth-generation set-top and a SteelSeries Nimbus controller. Disney quietly discontinued support for Apple's platform in March, suggesting the future of Infinity has been in peril for months.

There are two products left in Disney Infinity's pipeline, including this month's release of three new characters from "Alice Through the Looking Glass" and the "Finding Dory Play Set" scheduled to launch in June. A "Peter Pan" set was due later this year, but it appears those products have been canceled.


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