Disney Interactive has discontinued the Disney Infinity range of products, closed the 300 employee strong developer Avalanche Software, and is getting out of console game publishing.
Avalanche (not the same Avalanche that are behind Just Cause 3) worked solely on Disney Infinity, producing three versions of the game and large amounts of content to accompany the add-on characters and packs that were sold for the toys-to-life series. Disney has confirmed that the two releases that are already scheduled - three new characters from Alice Through The Looking Glass and a Finding Dory playset - will go ahead and be released to stores before the end of June.
Once those are out though, it's all over for Disney Interactive. Any Disney-based videogames will be sold as licensed properties from now on, such as is the case with EA's Star Wars: Battlefront. There is a potential chance that a licensing war could open up, since the Disney IPs are naturally worth a massive amount of cash. Any publisher that got their hands on a more general licence to make games based on Disney properties would be in the box seat when it comes to printing money, so it's likely to cost them a fair bit to be able to take the chance.
We wish Avalanche Software's 300 staff the best, and hope that they find themselves new positions soon.