Disney said Tuesday it is shutting down its Disney Infinity line of video games, saying the changing market is too risky.
The company booked a $147 million charge, mostly for unsold inventory. It also laid off about 300 employees, most of them based in Salt Lake City at Avalanche Software, a game studio Disney bought in 2005.
CEO Bob Iger told analysts the risks “caught up with us.” Although the unit did well — bringing its interactive division into profitability in recent years — Disney determined it was better to manage the risks by licensing characters rather than developing video games from scratch, he said.
Other video game companies are extending a helping hand to the hundreds of people that Disney is laying off.
Insomiac Games, for example, posted this message on Twitter:
0So saddened by Disney Infinity and Avalanche news. For those affected, we are hiring: https://t.co/GtfGhhZuLZ #gamedevjobs
— Insomniac Games (@insomniacgames) May 10, 2016