Disney Infinity Shutting Down; 300 Employees To Get Unemployed
Disney Infinity line of video games is closing down forever and about 300 employees are going to become jobless.
Citing the changing market is too risky, Disney booked a $147 million charge and mostly for the unsold inventory.
CEO Bob Iger said business these days is changing and the company does not have enough confidence in it in terms of it being stable.
The decision involves closure of its Avalanche Software in-house studio that was bought in 2005. Most of the axed employees are from this office.
Disney Infinity was launched in 2013 to compete with Skylanders, billion-dollar franchise of Activision. It helped in making profit to the interactive business after years of losses. However, diminishing sales lately paved the way to closure.
The company posted revenue of $12.97 billion, disappointing investors as it was below the Street forecasts of $13.26 billion.
Sares of the company tumbled 5.6 percent after the result.