Disney Interactive, the Walt Disney Co. division that focuses on console, handheld, online, and mobile games, laid off 200 employees on Monday and hired a former Electronic Arts executive as part of a sweeping restructuring of the money-losing business unit.
Going forward, Disney will concentrate on increasingly popular social media and mobile games, moving away from console games which are losing popularity and are more costly and time-consuming to develop. Most of the employees let go reportedly were from the roughly 700-person staff working on games.
As part of the layoffs, Disney will shut entirely one of its game studios, Propaganda Games of Vancouver, B.C., that worked on the “Tron” game, sources told the Wall Street Journal.
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