This is what Eurogamer is saying, citing sources close to the project. The decision apparently comes from Warner Bros. Entertainment.
The sources claim that the original three-year plan for LEGO Dimensions is not working out. The main reason is that the special LEGO toys are very costly to make, but they aren’t generating enough profits.
LEGO Dimensions launched in 2015 across all major gaming platforms to much fanfare. It features quite a vast universe which mixes all kinds of popular stories and characters. Players can buy LEGO toys and minifigures which are then scanned and recognized by a special device. As a result, it brings the figures to the video game and adds new levels, options, abilities, stories.
The LEGO Dimensions packs offer The Hobbit, Batman, Superman, Sonic the Hedgehog, Scooby-Doo, LEGO characters and many more. All of them come with additional content which may be a bad thing. It turns out the over-abundance of content is overwhelming gamers and it may have been a factor for poor sales.
As a result, the LEGO Dimensions might be pulled a full year earlier than originally planned. So far Warner Bros hasn’t confirmed the end of the series.