The hits keep coming to Disney Consumer Products and Interactive Media—and not the great kind.
Four months after shuttering its Infinity gaming business, Disney has cut 5% of its staff within its combined Consumer Products and Interactive Media (DCPI) group, amounting to 250 layoffs.
A significant portion of the job losses have taken place at the now-closed Washington-based studio that made the Marvel: Avenger’s Alliance mobile franchise (pictured). Additional cutbacks were made within the company’s California-based consumer products arm.
The discontinuation of Disney’s toys-to-life gaming platform Infinity led to 300 job losses in May, and spawned a string of questions regarding the company’s future interactive strategy. The closure of Utah-based Avalanche Software, which had been producing the Infinity titles since 2013, resulted in a US$147-million write down against Disney’s second quarter earnings. For the period ended April 2, DCPI saw a 2% dip in revenues to US$1.19 billion, where low Infinity revenues were offset by higher licensing revenues.
In May, Disney also outlined its plans to focus on a licensed gaming model, as opposed to making original console games based on its franchises. The company continues to make mobile gaming properties in-house, while also pursuing third-party mobile opportunities at the same time.
Disney combined its Consumer Products and Interactive Media units in June 2015 in an effort to better meet changing consumer preferences in a technology-driven marketplace. (Nine months later, its division co-chair Leslie Ferraro left the division, leaving former Disney Interactive president James Pitaro to lead DCPI as chairman.)
In Disney’s third quarter of this year, DCPI experienced a 1% dip in revenues to US$1.1 billion. The division’s operating income also declined by 7% to US$324 million. The numbers were driven down by decreases in revenues for merchandise licensing, retail and its Japan-based mobile businesses. These were partially offset by a boost within the company’s games business, which had lower product development and marketing costs following the discontinuation of Infinity. DCPI did, however, lead the House of Mouse to see sales rise from merchandise based on Finding Dory/Finding Nemo and, unsurprisingly, Star Wars.