It’s been a fun ride for Disney Infinity, but all good things must come to an end.
Disney confirmed in its latest earnings report Tuesday that it will no longer self-publish console games — and there’s a strong implication that Infinity, its proprietary toys-to-life platform that included Marvel, Star Wars and other playsets, is finished.
The company is reporting a $147 million loss in its second quarter earnings as a result of that shift.
The move is a surprise, coming just two months after Disney confirmed that Infinity would expand in 2016 around themed add-on packs, starting with the Smash Bros.-esque arena fighting of Marvel Battlegrounds. Pixar, Disney and Star Wars-themed packs were to follow later in the year.
Disney CEO Bob Iger addressed the Infinity news during the Q&A portion of the investor call.
“That business is a changing business,” he said, referring to the “toys-to-life” category of games that includes Infinity, along with Lego Dimensions and Skylanders. “You … take on substantially more risk, particularly when it comes to manufacturing and managing the toy inventory, of that business.”
Iger took a moment to praise Infinity, calling it a “good product” and talking up the strong performance of the first and second games.
“I give the developer a lot of credit for the product that they made,” he said. “But we knew going in that there would be a lot of risk with this product, and the fact that we did so well initially gave us the confidence to continue with it.
“The truth of the matter is that the risks that we saw at the beginning when we started this caught up with us.”
Mashable can confirm that Disney will be shutting down Avalanche Software, the studio that created Infinity. The closure means that approximately 300 jobs will be cut.
We’re also able to confirm that Disney still intends to release a number of planned add-ons for Infinity. Specifically, expect to see a playset in June based on the upcoming Pixar filmFinding Dory and, later this month, three character figurines from Alice Through the Looking Glass.
The $147 million loss, dubbed the “Infinity Charge,” was “primarily due to an inventory write-down.” Which is to say, Disney reduced the value of its Infinity assets, likely due to an excess of unsold product.