Earlier today Disney announced that it would be discontinuing its Disney Infinity franchise in June of this year. While Senior Vice President John Blackburn gave no reason for the sudden ending of the series in his blog post, Disney later released an official statement revealing the cause for the closure:
After a thorough evaluation, we have modified our approach to console gaming and will transition exclusively to a licensing model. 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. This was a difficult decision that we did not take lightly given the quality of Disney Infinity and its many passionate fans.
This decision also closes the doors of Avalanche Software, the development team behind Disney Infinity.