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Disney Infinity cancelled, Avalanche Software shut down

Disney ceases console game publishing, roughly 300 jobs cut.

Disney Interactive will no longer self-publish console video games. That means it will cease development on Disney Infinity and shutter its developer Avalanche Software.

The company just made the announcement during its latest earnings report where it noted that it had a $147m charge due to "the discontinuation of our self-published console games business, principally Infinity."

Disney said it had "lower results" for Infinity than the company predicted. Disney's Consumer Products and Interactive Media devision revenue for the quarter decreased by two per cent to $1.2bn. Its operating income also decreased eight per cent to $357m.

Disney Infinity general manager John Blackburn confirmed in a blog post that the final two retail releases for the game are still set to arrive. These include three new characters from Alice Through the Looking Glass, due this month, and the Finding Dory Play Set coming in June.

"Our goal for Disney Infinity was to bring the best of Disney storytelling to life in homes around the world, and with your support we accomplished that. We hope you had as much fun playing the game as we had making it," Blackburn said.

"As we turn to the next chapter in our story, I want to thank everyone who helped bring Disney Infinity to life, particularly Disney's Glendale-based production and publishing teams, our external development partners, and of course the incredible Avalanche team for their tireless dedication to this project."

According to Wall Street Journal reporter Ben Fritz, nearly 300 were laid off in Avalanche Software's closure.

It's worth noting that there will still be video games based on Disney properties, but they'll be licensed out to other publishers, just as Disney has licensed its Star Wars brand to EA.