Disney dumps 200 games makers

Walt Disney has dumped 200 employees mostly from its game-making division.

More redundancies are expected to follow as the company follows the instincts of its founder and ensures that workers are kept chained to the yoke.

"As part of setting a strategic direction for future success in the digital media space, the Disney Interactive Media Group yesterday began a restructuring process," a Disney spokeswoman said in a statement yesterday.

According to reports, Disney will shut down Propaganda Games of Vancouver, British Colombia completely. The studio was responsible for the Tron: Legacy game which ultimately failed in the shops.

Disney, a one-time maker of dreams, last year bought Playdom, a company that makes games for Facebook for an estimated $760 million. It looks like this is the direction Disney thinks is the way forward. Playdom is thought to have some 27 million active monthly users, according to AppData.com, which tracks such things. This audience has fallen from a heady 41 million when Disney acquired the company, suggesting the outfit has contrived to lose it magic touch.

Disney's interactive media group posted a $234 million operating loss for fiscal 2010.