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Jan 25, 2011

Jobs Axed At Disney Interactive Studio

Up 50% of staff to go as firm repositions as digital-only publisher.

Disney Interactive Studio, the House of Mouse's gaming arm, is said to be axing 'as many as half' of its 700-strong staff, as it repositions itself as a digital-only publisher according to a report in Variety.

The restructuring of the studio will see it move away from being a 'packaged goods company' - "As part of setting a strategic direction for future success in the digital media space", said a statement from Disney.

The publisher most recently responsible for Tron: Evolution and Disney's Epic Mickey recently saw a change in upper management following the departure of Disney Interactive Media Group head Steve Wadsworth in September 2010, with John Pleasants CEO of Playdom, the social gaming firm that Disney acquired for $763 million in late July, taking over the reins of the studio.

The change of management also signalled a change in direction for the publisher, with Disney CEO Bob Iger saying the new exec would not only "focus on turning those businesses into profitability but diversifying our presence in the business, so we're not reliant on one platform that's obviously facing challenges."

Propaganda Games, the Vancouver-based developer owned by Disney Interactive, was recently closed by the studio following the release of Tron: Evolution and the cancellation of Pirates of the Caribbean: Armada of the Damned last year.

Black Rock Studio, the Disney-owned developer of Split/Second were unavailable for comment.

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