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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.     


No Caption Provided
 
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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TheHT

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Edited By TheHT

Damn, and more to come?

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MattyFTM

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Edited By MattyFTM  Moderator

Hope Johnny V isn't affected by any of this. Fingers crossed for him.

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President_Barackbar

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Ok people, NOW is when you can start worrying about Johnny V's job.

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SpicyRichter

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Edited By SpicyRichter

Here's hoping Johnny V keeps his job! I hate hearing about layoffs, companies should be expanding not contracting

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chogi

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Edited By chogi

SAVE JOHNNY V!

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jmfinamore

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Edited By jmfinamore

Kinda sucks. Disney got into publishing in a real big way really quickly. And it seemed like they were going in the right direction. They just got stuck with some mild stinkers right out of the gate. Split/Second was really good though.  
 
Has there been any word on how well Epic Mickey or Tron sold? 

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Jayross

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250 O.o whoa... that sucks.

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ch13696

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Edited By ch13696

So if their going the way of digital distribution, will they still be helping with Kingdom Hearts?

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El_Derrico

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Hope Johnny V isn't part of the layoffs. Dude's getting married.

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fox01313

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Edited By fox01313

This always sucks to hear happening, best of luck to those developers/artists/ect.

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MisterMouse

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major bummer.

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CaLe

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Well Junction Point hired a whole load of people for Epic Mickey, it was only to be expected that they would no longer be necessary after the game finished.

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Mcfart

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Edited By Mcfart

Good luck to the layoffs.

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MysteriousBob

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This is what happens when you give an awkward, overly ambitious N64-throwback game an absurd budget.

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Chris2KLee

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Looks like Disney is beating something of a tactical retreat after a strong push to get into games in a serious way. Best wishes to all the people cut loose, hope everyone lands on their feet.

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Hailinel

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Edited By Hailinel
@fwylo:  There's something incredibly tasteless about posting that image against news of mass layoffs.
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xseedx

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Man. Sad news.

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BradNicholson

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Edited By BradNicholson

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.     


No Caption Provided
 
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.