Disney Infinity is Closing Shop, Avalanche Software Being Shuttered

To be honest, this revelation feels like it’s coming out of nowhere and very suddenly.  Truly, I had to re-read the email that came my way on it a few times to make sure I wasn’t being duped.  Sadly, that’s not the case and if you enjoyed the Disney Infinity games, there’s bad news.  Apparently, Disney Interactive has decided they no longer want to be in the game development/publishing game.  Instead, they’re switching to a pure licensing model, and using partnerships with other studios (like EA is with Star Wars).

Disney will continue to have a strong console gaming presence through licensing partners such as Electronic Arts and Square Enix, as the category provides a unique consumer experience as well as opportunity for our business. 

The result, is Disney Infinity has been given the boot and will no longer get support and updates.  A few reasons were given aside from the switch in business models, but simply put…Toys-to-Life as a gaming genre just isn’t making money anymore.  Not enough to justify the costs of production.  It’s a big bummer as Infinity feels so new still (having only been out for about 3 years), and the recent Star Wars expansion enticing fans and collectors.  I guess even that wasn’t enough.  

The team behind Disney Infinity created an incredible product. It was a critical success that inspired a deeply engaged community of players. But, despite Disney Infinity’s quality, it has become difficult to financially justify continued investment given the lack of growth in the toys-to-life market. Coupled with high development costs, the economics of our current vertical business model no longer add up.

The biggest bummer, however, is that they’ve closed Avalanche Software.  This means all the game devs from the company are now out of a job, but it sounds like Disney will be trying to find new internal positions for those affected: 

During this time of transition, we will work with impacted employees to provide resources and support, as well as explore potential internal opportunities. I am grateful to the team behind Disney Infinity, and want to once again thank everyone who has been a part of it.

Let’s just hope they land on their feet.  In the meantime, what do you guys think about Disney Infinity going away?  Were you one of the avid players/collectors?