Well, the market was saturated. Not only did Activision release new Skylanders game every year, there were also many more toys to life games. Disney Infinity, Lego Dimensions, Amiibo games. Pretty much the same happened to Guitar Hero and Rockband games.
As the games were for kids, they get bored rather easilly, but also paying 60€ for a game and an additional 100€ for characters didn't make parents happy. I believe most bought the toys from a clearance once the new ones cane out, so the retailers didn't have much incentive to keep the toys on a store shelf because they weren't making any money with them.
And in the end, someone figured out that selling everything as DLC would make more money anyway. It's just hard to sell "toys to life" as "DLC to life" once people have learned to associate certain brands with toys.
I personally bought at least 3 Skylanders games, one Disney Infinity game and Lego Dimensions for my kids and quite a few toys - all toys from clearance for pocket change.
Ei Kiinasti.
Eikä Japanisti.
Vaan pannaan jalalla koreasti.
Nintendo games sell only on Nintendo system.