The decision, which has resulted in a $147 million write-off, will involve the closure of Disney’s in-house studio, Avalanche Software, and in effect marks The Walt Disney Company’s withdrawal from the console gaming sector.
Disney has had a troubled presence in the console games business for a number of years.
In 2014, it was reported that the company’s interactive division had been losing $200 million a year between 2008 and 2012. The company shut down several studios and laid off 700 staff members.
Iger said on a call with investors that he lost confidence in the video-game business.
Disney’s support for Infinity will end after the release of Alice Through the Looking Glass and Finding Dory sets later this year.