A "restructuring" of the Vancouver-based Propaganda Games takes approximately 35 employees and the unannounced sequel to last years Turok revival.
It appears as though we can finally put those rumors that call for Disney to purchase EA Games to rest as the House of Mouse has begun to follow the ugly (but necessary) trend of restructuring its business, laying off approximately 35 employees from its Vancouver-Based Propaganda Games studio. Kotaku, which broke the news, initially reported that about 70 employees were cut in the downsizing of the developer, but was later clarified by Disney Interactive Studios, scaling the number down.
Propaganda Games, which was originally formed by ex-EA Games employees (including key members of the NBA Street and Def Jam Vendetta teams), has only released one game to date: last years first-person dinosaur shooter, Turok. While it took a bruising at the hands of critics, the revival did well enough in the marketplace, selling over a million units to date. Prior to the layoffs, Propaganda had two projects underway, one of which was supposably a sequel to Turok, as reported by Kotaku. In its clarification, Disney Interactive noted that no such sequel had ever formally been announced, though they still retain the rights to the property.
Propaganda won't be the only Disney studio feeling the sting of these cutbacks, as Disney also plans to consolidate a few of its studios, including Avalanche Studios and Fall Line, both of which are responsible primarily for its licensed titles. Outside of its video game operations, Disney is planning further cuts to its other businesses, including the ABC and ESPN networks.