Is Activision Blizzard, Inc. (ATVI) Afraid of The Walt Disney Company (DIS)?

One of last year’s best-selling video game franchises is a popular markdown this week.

Activision Blizzard, Inc. (NASDAQ:ATVI) stumbled on a sleeper hit in Skylanders last year. Skylanders Spyro’s Adventures was the industry’s hottest seller through the first half of 2012. Combining actual action figures that engage in video game battles once docked on a console-connected portal, the leading video game publisher succeeded in winning over young gamers that seemed to have given up on following their older siblings and parents into diehard gaming.

Now we’re seeing Skylanders Giants starter pack — a platform that rolled out late last year with larger figures for $75 — being aggressively discounted.

Sifting through Sunday’s circulars, here are some pretty nifty deals I came across.

The starter pack made the front page of Target Corporation (NYSE:TGT)’s circular with a mind-blowing $40 price.

Toys “R” Us is offering a $25 gift card with any Skylanders purchase of $80 or more, and it’s also marking down additional figurines by 50%.

Not to be outdone, Amazon.com, Inc. (NASDAQ:AMZN) is matching Target’s rock-bottom price.

Popular video games do get popular as they age, but it’s not a coincidence that we’re seeing a wave of discounts. Retailers just began taking preorders for a similar The Walt Disney Company (NYSE:DIS) gaming experience.

Disney Infinity won’t hit the market until this summer, but it’s easy to see why Activision Blizzard, Inc. (NASDAQ:ATVI) is getting aggressive. It’s a similar format where physical figures are docked to enter The Walt Disney Company (NYSE:DIS)’s virtual realm.

We’re not talking about Daisy Duck and Mickey Mouse, here. Disney Infinity‘s starter pack includes pirate Jack Sparrow, Monsters‘s Sully, and Pixar superhero Mr. Incredible. The family entertainment giant knows its audience, so it’s building this franchise on its more recent characters that appeal to young gamers.

This will be a threat to Activision Blizzard, Inc. (NASDAQ:ATVI), but the gaming giant caught a break. Disney Infinity was supposed to hit the market by the end of June, but now the release date has been bumped to mid-August. The $75 preorder price also gives Activision Blizzard, Inc. (NASDAQ:ATVI)time to build out its installed base of Skylanders players at a lower price point.