Earlier we reported on significant layoffs at Epic Mickey developer Junction Point studios. Reports are now coming in that those layoffs were just part of a larger restructuring process, with the end result shifting the Disney Interactive Media Group into a digital-only company. The restructuring efforts began back in September of last year, with John Pleasants and Jimmy Pitaro replacing Steve Wadsworth as head of the media group.
Other factors include the resignation of General Manager Graham Hopper (largely attributed to being the driving force behind most AAA titles associated with the group) and the recent closing of Propaganda Games after the cancellation of Pirates of the Caribbean: Armada of the Damned. Disney Interactive’s new strategy appears to rely on developing social and browser-based games.
UPDATE: Although no official figures have been released, a Disney representative told IndustryGamers that initial estimates place the amount of layoffs at “significantly less than 50%.”