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Disney is ending its Infinity line of video games and closing the Salt Lake City-based subsidiary that developed them — creating a reported loss of about 300 jobs.

News that Disney would discontinue the games, in which toy figures of Disney characters were incorporated into a console video game, came in a quarterly earnings report Tuesday that fell short of forecasts, the Associated Press reported.

The company based in Burbank, Calif., said it had second-quarter earnings of $2.14 billion, or $1.30 per share. Earnings, adjusted for non-recurring costs, came to $1.36 per share.

The adjusted results, which exclude the $147 million charge — or 6 cents per share — for shutting the Infinity division down, fell short of Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of $1.40 per share.

The game was developed by Avalanche Software, a Salt Lake City company that was launched in 1995 and which Disney acquired in 2005.

In a statement, John Blackburn, Avalanche's co-founder and senior vice president/general manager of Disney Infinity, thanked Disney Interactive's staff, including "the incredible Avalanche team for their tireless dedication to this project."

In a statement emailed to Wired magazine, a Disney executive confirmed that Avalanche will be shut down.

"After a thorough evaluation, we have modified our approach to console gaming and will transition exclusively to a licensing model. This shift in strategy means we will cease production of Disney Infinity, where the lack of growth in the toys-to-life market, coupled with high development costs, has created a challenging business model," wrote Jimmy Pitaro, chairman of Disney Consumer Products and Interactive Media, to Wired.

Calls to Avalanche Software seeking comment were not returned Tuesday.

Disney posted revenue of $12.97 billion in the period, also falling short of Wall Street forecasts. Six analysts surveyed by Zacks expected $13.26 billion. Analysts were expecting better performance at the parks and in the consumer products division that houses the Infinity line.

When the Disney Infinity game was introduced in 2013, it was considered an ambitious entry into the video game world. Disney was following the model, first popularized by Activision's Skylanders game series, of incorporating collectible figurines into an onscreen game format.

Disney Infinity started with such characters as Capt. Jack Sparrow (from "Pirates of the Caribbean"), Sully (from "Monsters, Inc.") and Mr. Incredible (from "The Incredibles"). Later editions included classic Disney characters, Marvel superheroes and icons from the "Star Wars" universe.

"We want to create a game good enough that you want to play with your child, that you can create those memories with," Blackburn told The Salt Lake Tribune in 2013.

Robert Kessler, executive director of the Entertainment Arts & Engineering program at the University of Utah, speculated that market saturation might have been Disney Infinity's undoing.

"There are only so many people willing to buy those kinds of games," Kessler said, citing the introduction of Nintendo's Amiibo figures and Warner Bros.' LEGO Dimensions game.

While the loss of 300 jobs — including a couple dozen graduates of the U.'s EAE program — is a shock, Kessler said the local software industry is resilient.

"It seems like something good spins out of it, almost always," Kessler said.

The Associated Press contributed to this article.