Disney Interactive has discontinued its Infinity line of toys-to-life games, shutting down its Avalanche studio in the process.

According to Infinity Inquirer, an internal memo cited high development costs and "the lack of growth in the toys-to-life market" as the primary reason for the cancellation.

The cancellation will cost Disney $147 million, including inventory write-down and employee severance.

Close to 300 jobs will be cut in the dissolution of the Utah-based Avalanche (not to be confused with the Stockholm-based Avalanche Studios).

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The announcement explains, to a degree, Disney's decision to pull out of exhibiting at the E3 Expo this year.

Disney Infinity launched back in 2013, offering players a line of toys based on Disney, Marvel, and Lucasfilm properties that could be dropped into gameplay in a variety of combinations.

Two more toy sets are still in the pipeline, based on upcoming Disney releases Alice Through the Looking Glass and Finding Dory.

- gameplanet.co.nz