×
You will be redirected back to your article in seconds

Disney Folds Infinity Console Video Game Business, Takes $147 Million Charge

Disney is getting out of the video game publishing business. The company disclosed Tuesday that it has scrapped its Disney Infinity-branded console games business, resulting in a $147 million charge against its fiscal-second quarter earnings.

The Infinity games venture bowed in August 2013 and was published by Disney Interactive Studios. The plan was to release a new edition of the game every year with a set of action figures accompany the console games. It was seen as a natural extension for the wealth of Disney-owned properties from Marvel, Lucasfilm and Pixar. Disney cited the discontinuation of the Infinity series in its fiscal second-quarter earnings release Tuesday.

Disney chairman-CEO Bob Iger acknowledged that the console video game arena was too much in flux for Disney’s liking.

That business is a changing business and we did not have enough confidence in the business … to stay in it from a self-publishing (operation),” Iger said. The write-off, he noted came from Disney having to manage the physical inventory of games. “We feel like we’re better off managing the risk that the business delivers by licensing instead of publishing.”

The initial 2013 Disney Infinity release did well enough but the subsequent titles saw a significant drop in sales, he said. “The risk caught up with us,” Iger said.

John Blackburn, Disney Infinity senior VP and g.m., said in a message sent via Twitter that Infinity would still release two more titles, “Alice Through the Looking Glass” this month and “Finding Dory” in June.

“From the beginning, Disney Infinity was built for you—our fans—and I wanted to take a moment to thank you not just for your support over the years, but for creating a community that made Disney Infinity more than just a game,” Blackburn wrote. There were online rumors that Disney will also shutter its Avalanche Software production facility in Salt Lake City.

Disney execs made it clear that the company is out of the video game publishing arena. “Going forward our console games strategy will focus solely on licensing our great portfolio of content,” said Disney CFO Christine McCarthy.

The news about Infinity comes as Disney earnings fell short of analysts expectations for the first time in two years. That sent the company’s shares down more than 6% in after-hours trading. Before the earnings news was releases, Disney shares closed up 1.2% for the day to $106.60.

More Digital

  • Cory-Haik-Vice

    Vice Media Hires Cory Haik, Former Mic Publisher, as Chief Digital Officer (EXCLUSIVE)

    Vice Media has recruited Cory Haik, former publisher of digital news start-up Mic, as chief digital officer to lead the youth-culture company’s global internet businesses. Haik will be based at Vice’s Brooklyn headquarters and report to CEO Nancy Dubuc. She most recently worked at Mic, which last fall laid off virtually its entire staff before [...]

  • Snapchat logos

    Porn Studio Starts Building X-Rated Snapchat Lenses, Encourages Users to Do the Same

    Adult entertainment company Naughty America wants to use augmented reality to get the word out about its paid services. The company has begun to make Snapchat lenses featuring some of its models, and is teaching its audience to do the same. Naughty America shared three such lenses on its website (link not safe for work) [...]

  • New, Likely Cheaper Galaxy Home Speaker

    Samsung Is Getting Ready to Introduce Second Smart Speaker

    Samsung still isn’t selling its Galaxy Home smart speaker, but the company may be getting ready to introduce a second model soon: An FCC filing for an “AI speaker” suggests that the new model, like the original Galaxy Home, will be dual-branded, featuring both Samsung’s own brand name as well as that of its audio [...]

  • Streaming Placeholder

    TikTok Owner Preparing Streaming Service to Rival Spotify (Report)

    ByteDance, the Beijing-based owner of the TikTok video app, is developing a paid streaming music service aimed at the same emerging markets that Spotify and Apple are seeking to explore, according to a report in Bloomberg. The app could be introduced as early as autumn, according to the report, which adds that the company has [...]

  • VidCon-Now-Stacey-Kelly

    VidCon Launches First Original Series to Promote Creators Year-Round

    VidCon brings together thousands of fervent fans at its annual conventions, who flock to the events to see their favorite YouTubers and other digital celebs in the flesh. Now the Viacom-owned division is trying to keep the excitement burning during the VidCon off-season, too. This week VidCon is launching its first foray into original content [...]

  • Stranger Things

    Coca-Cola Will Revive New Coke in Alliance With Netflix, 'Stranger Things'

    A rush of TV watchers to streaming video has prompted Coca-Cola to test an interesting pour. Coca-Cola will bring New Coke back to market for a brief time, all part of a partnership with Netflix, which has featured Coke in its cult-favorite series “Stranger Things.” The third season of the series, set in 1985, will [...]

More From Our Brands

Access exclusive content