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Disney Ending Disney Infinity Franchise, Avalanche Software Closed
Disney has announced that Disney is ending Disney Infinity game franchise along with its internal game development studio Avalanche Software.
Jimmy Pitaro, Disney’s chairman of consumer products and interactive media, said that the company has changed its approach to console games and will be focusing on exclusively on a licensing model. This change means that Disney will shut down its internal studio and layoff 300 developers.
Jimmy Pitaro Said:
This was a difficult decision that we did not take lightly given the quality of Disney Infinity and its many passionate fans.
It will cost Disney $147 million to offset the cancellation, other factors like severance for employees and assets are also included in the costs. This news was followed by Disney’s missed estimate for annual revenue and earnings, which leaded to 6% drop in stocks.
Disney CEO Bob Iger explained during an earnings call following the announcement:
We thought we had a really good opportunity to launch our own product in that space; the console space, but also the toys to life space,” Iger said. “In fact we did quite well with the first iteration and did OK with the second, but that business is a changing business and we did not have enough confidence in the business in terms of being stable enough to stay in it.
Iger further said the company feels that it is better off managing the risk of this business by licensing instead of publishing. He further said that the risk they calculated while starting this project has caught up with them.
John Blackburn, senior vice president and general manager of the Infinity franchise posted on the official Disney interactive blog that the goal for the company was to create a community that made Disney Infinity more like a game. Blackburn said that through the efforts of our team they feel they have accomplished that.
What do you think of Disney ending Disney Infinity game franchise and also ending its game publishing department? Let us know in the comments.