Disney Interactive Studios confirmed the cancellation yesterday afternoon following a rumor report from Kotaku stating that the game was axed and people lost their jobs. Here's the boilerplate statement from DIS, which mentions that the publisher has "completed a restructuring of Propaganda Games" that has affected "one of the studio's two development teams."
Disney Interactive Studios confirms the cancellation of the Pirates of the Caribbean: Armada of the Damned video game which was scheduled to be released in 2011. As a result of this decision, Disney Interactive Studios completed a restructuring of Propaganda Games, its Vancouver, BC internal studio, affecting one of the studio's two development teams.
The studio is still in active production of Tron: Evolution, the video game, which will be released on December 7, 2010 with additional DLC (downloadable content) support following the game's release.
== TEASER ==Propaganda Games, as noted in the above, will continue developing Tron: Evolution: The Video Game. Tron is still set to be released later in December and the lone team at the studio will continue to support the movie tie-in post-release with DLC.
Armada of the Damned apparently looked good when Jeff saw it briefly earlier this summer, and critics seem to agree that it had potential despite being one of those dreaded movie games. You can read Jeff's take on it here if you'd like, though, you might leave it feeling a bit blue considering what has happened.