UPDATE: The Propaganda closure is just part of a quiet reduction in workforce at Disney Interactive. The unit has also cut a number of console jobs at Junction Point Studios in Austin, bringing the total number of jobs nixed to around 200, or 29% of the total Disney Interactive workforce. Disney Interactive co-heads James Pitaro and John Pleasants have indicated that they are moving in the direction of more social media and mobile gaming.
EARLIER: Disney Interactive is shutting down Propaganda Games, the Vancouver studio which most recently worked on the weak-selling and poorly-reviewed title Tron: Evolution. In the fall, John Pleasants and Jimmy Pitaro were made co-heads of Disney Interactive, and the company has since indicated that it would be going more in the direction of social media gaming and mobile titles rather than console games. In October, Propaganda was told that Disney would be nixing the latest Pirates of the Caribbean game, an announcement which led to the loss of dozens of jobs.