Disney's Massive Layoffs

News by Daav Daavpuke on  Jan 25, 2011

Right now, I know a place that is not the happiest place on Earth: Disney’s Interactive Studios. Disney Interactive Media Group (DIMG) has been going around with a huge machete into its own divisions and was reported to lay off as much as half of its developer employees.
 

Noobfeed News - Disney's Massive Layoffs
Poor Mickey's down in the dumps.
 

In this second round of cuts, Junction Point Studios was noted to be affected. Responsible for recent holiday game Epic Mickey, the studio is not yet declared to have been closed down and Warren Spector’s fate should be safe for now. Still, times are shaky for the Austin-based group. Epic Mickey received mixed reactions, although selling over a million copies during holiday season. The fate of Black Rock Studios, responsible for racer Split/Second, is as of yet unknown; but sales from that game were also less than outstanding.
 

Noobfeed News - Epic Mickey and Split/second
Epic Mickey and Split/Second
 

This follows last week’s reports that the makers of Turok, Propaganda Games, had been closed down after more lukewarm receptions of their latest movie tie-in, TRON: Evolution.  This was in turn already an additional cutback, after Disney announced the cancelation of MMORPG Pirates of the Caribbean: Armada of the Damned, in which it already invested millions. Approximately 170 Propaganda employees got their pink slip then.
 

Noobfeed News - TRON: Evolution.
Yours truly offered to review TRON: Evolution, but I suppose it was too little, too late...
 

It seems the ball is severely rolling within the Disney group, which is all part of massive restructuring, after acquiring 3rd place player in the social game market, Playdom. John Pleasants, Playdom CEO, took place as Disney’s game publishing division’s co-president, after departure of longtime DIMG president Steve Wadsworth. Disney’s takeover of Playdom is recorded as the largest to date, following EA’s Playfish acquirement for $400 million in 2009.

The layoffs so far are big enough for all employees to congregate and start their own studio. Disney has not been available for an official statement so far, but it is eerie to think where the ball will stop its descent.

Daav Valentaten, NoobFeed.

Daav Daavpuke

Editor, NoobFeed

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