Disney Shuts Down Console Video Game Publishing Arm, Cancels ‘Disney Infinity’

The company admits the business is worth less than it hoped, swallowing a $147 million charge

Disney Infinity Marvel

Disney’s stint as a publisher and developer of console video games  is over, the company announced in its quarterly report on Tuesday.

“After a thorough evaluation, we have modified our approach to console gaming and will transition exclusively to a licensing model,” read a statement from Disney Consumer Products and Interactive Media boss Jimmy Pitaro that was given to TheWrap. “This shift in strategy means we will cease production of Disney Infinity, where the lack of growth in the toys-to-life market, coupled with high development costs, has created a challenging business model.  This means that we will be shutting down Avalanche, our internal studio that developed the game.

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