Disney Infinity 3.0: Series Shuts Down Over Failing Q2 Reports
It may have brought a smile on a lot of children’s faces, but Disney Infinity is preparing to be gone for good.Advertisement
Disney Infinity Senior Vice President and General Manager John Blackburn has recently confirmed the news, saying that the company has “made the difficult decision to discontinue” the game that aims to bring storytelling to life. Nonetheless, Blackburn assures fans that Disney Infinity will continue with its remaining two release later this year.
As far as Disney is concerned, the company has performed relatively well in most of its business segments, with the exception of its Consumer Products and Interactive Media. According to its results for the second quarter, this particular segment suffered an eight-percent decline in operating income as well as a 2-percent decline in revenues when compared with the segment’s performance around the same time last year.
Disney only made around $1.1 billion for this segment in revenues, compared to the $1.2 billion it made the previous year. Meanwhile, the Consumer Products & Interactive Media segment only made approximately $357 million in operating income versus last year’s income of about $388 million. Foreign currency was said to be the main reason for the decline. Nonetheless, these decreases managed to be partially offset by higher licensing revenues when it comes to “Star Wars” and “Frozen” merchandise.
Meanwhile, the company’s second-quarter report already reflects the Infinity charge along with restructuring and impairment charges amounting to contract termination and severance costs of $27 million in pre-tax. According to a report from Forbes, as much as 300 jobs will be cut due to the shutting down of Infinity.
Moreover, Disney’s current quarter performance is said to be an earnings miss. Although the company made $2.1 billion during the quarter, it was still lower than what analysts had expected. Disney stock (DIS) is now up slightly by 1.20 percent to $106.60.