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Disney Interactive Confirms Restructuring As Devs Suffer Layoffs

Disney looks to digital instead of packaged goods.

Reports that a lot of people are losing their jobs at Disney Interactive appear to be genuine, as the publisher is beginning what it calls a “restructuring process” that will move away from traditional packaged games and toward the digital media games space. 

“As part of setting a strategic direction for future success in the digital media space, the Disney Interactive Media Group [Disney Interactive Studios' parent company] today began a restructuring process,” Disney said in a statement given to Variety earlier this morning. 
 
Around 250 people at Disney Interactive have been let go during a “first round” of layoffs over the last 24 hours, according to Joystiq. This news follows the recent reports of an unknown amount of layoffs at Junction Point, the studio who put out Epic Mickey.     


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The writing has been on the wall for some time, according to CNBC and Variety. The division paid big money for Facebook developer Playdom in 2010 and then lost a couple of key corporate guys, including president Steve Wadsworth and games department GM Graham Hopper. Both were replaced by Playdom CEO John Pleasants.  
 
Also, back in 2010, there were layoffs at Propaganda Games following the cancellation of Pirates of the Caribbean: Armada of the Damned. In 2011, Disney Interactive announced the shuttering of the entire studio after it shipped its other title, Tron: Evolution: The Video Game

As Joystiq points out, Disney Interactive has yet to provide a statement on the status of Junction Point or Split Second developer Black Rock Studio. We definitely look forward to hearing something, and wish the best to those who've lost their jobs. 

68 Comments

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deactivated-5ba16609964d9

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Company that puts out mediocre games that fail to fly off the shelf features lay-offs, life is so unfair.  I bet Disney is regretting trading Al Michaels for Oscar the Rabbit.

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mavs

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Edited By mavs

Black rock is so awesome. They have to stay together, I don't care what their games sold.

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TheChaos

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Edited By TheChaos

That'll teach 'em to cancel a Pirates game I was looking forward to!

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Deva

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Edited By Deva

  Who  achieved  it , and now  it  has become a  stumbling block to  a really  bad  can not be  bad news  for  those  who  step on ,  I am a bit lost.    

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vinsanityv22

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Edited By vinsanityv22

I liked Epic Mickey a lot, and I hate Playdom , so gut instinct says I gotta get pissed at this new CEO of theirs. However, I also can see how Epic Mickey - despite selling over a million copies (great news) domestically, before it even gets localized and shipped overseas (bet it'll do well in Japan) - was deemed too expensive. A 4 year dev cycle, with 3 other studios' outsourcing, for a product that still needed polish!?! Meanwhile, you have a studio like Avalanche who got Toy Story 3 done for multiple console in less than half the time (and did some of the outsourcing for Epic Mickey). I can see why this Playdom CEO guy would look at this stuff and say that the process needs to be refined and studios need to be cut down somewhat.
 
However, I'm still not happy for this. Disney Interactive was an interesting publisher as of late who put out many cool games. They really need to see the value in pursuing games like Epic Mickey and PotC: Armada of the Damned, and I sincerely hope they don't go back to licensed tie in/bargain bin hell. 
 
Wish all the employees at the studios' who lost their jobs luck in the near future. Losing your job always sucks, but losing it in the winter is extra trashy.

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kraznor

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Edited By kraznor

Is Johnny V okay?

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niamahai

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Edited By niamahai

where in the world is Johhny V now?!?!?!
 
 
<--still hoping for Turok2

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detectivepbert

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Edited By detectivepbert
@Hailinel: square enix should restructure as well then.  i liked crisis core but the rest of their recent games have been disasters.  fingers crossed that deus ex breaks the losing streak. 
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Hailinel

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Edited By Hailinel
@detectivepbert said:
" @Hailinel: square enix should restructure as well then.  i liked crisis core but the rest of their recent games have been disasters.  fingers crossed that deus ex breaks the losing streak.  "
Square Enix isn't part of this conversation.  This is a thread about Disney's video game division.
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BigBoss1911

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Edited By BigBoss1911

To bad about Propoganda Games being shut down this month, interested in seeing what Disney does with the turok licence.

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BBQBram

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Edited By BBQBram

Shame, I was really hyped for Epic Mickey and am still on the fence as to wether I'm buying it. 
This just seems like an unfair move though, fire the execs that made the bad decisions instead.

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toowalrus

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Edited By toowalrus

Is it Disney or Square that handles the majority of Kingdom Hearts? I'd like to see s PS3 KH3, then they can shut that franchise down. Hope Johnny V is still employed.

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jakob187

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Edited By jakob187
@El_Derrico said:
" Hope Johnny V isn't part of the layoffs. Dude's getting married. "
All he'd have to do is be on the Bombcast and he'll have another job within, like, two weeks.  Works for everyone else, it seems. 
 
However, jesting is in bad taste.  Folks losing jobs is never good.  I'll say that cancelling Pirates of the Caribbean was probably one of the worst decisions Disney could've made.  Instead of putting so much behind Epic Mickey, they could've put it where all the praise was going.  I'm really hoping that not much happens with Black Rock Studios, as those guys have made great games with Pure and Split/Second.  Mind you, I have only played Pure for a total of maybe 4 hours and Split/Second for about an hour, but both games were solid from what I played of them.
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dvorak

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Edited By dvorak
@TooWalrus said:
" Is it Disney or Square that handles the majority of Kingdom Hearts? I'd like to see s PS3 KH3, then they can shut that franchise down. Hope Johnny V is still employed. "
Square made those games. Disney pretty much just provided the licences.
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rayrayzr

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Edited By rayrayzr

Epic, but in a really bad way. Best of luck to all those affected.

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chocolaterhinovampire

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I hope Johnny V is safe

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Dragnipur

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Edited By Dragnipur

Okay ... no surprises there!

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MaddProdigy

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Edited By MaddProdigy
@ProfessorEss said:
" Why I find particularly strange is that Epic Mickey apparently sold over 1.5 million copies*. So does that mean even a million-plus seller these day can't support it's own budget? Or is it that Epic Mickey sales couldn't support other failed projects?    (*NDP numbers via Gametrailers' Invisible Walls #143) "
I really doubt it's a matter of money for a company like Disney. They have so much money in the bank, every venture from here to Epic Mickey 13.2 could go down the drain and they could just keep on truckin. 
 
I feel like this was probably in the works for a while. Disney tried to make a big push into video games, and when both Armada of the Damned and Tron failed I guess they decided Mickeyville on Facebook would be a better investment...