Disney announced today during their second quarter earnings call that they are cancelling Disney Infinity, closing Avalanche Software, and departing the game development and publishing business. GamesIndustry.biz has the details on what went down, saying the company will henceforth deal with gaming as a way to license its properties. Word is the shut down of Avalanche put 300 employees out of work, and the company is taking a $147 million write-down as a result of the closure. They offer a quote from Jimmy Pitaro, Disney's chairman of consumer products and interactive media: "This was a difficult decision that we did not take lightly given the quality of Disney Infinity and its many passionate fans."