Following reports in early February of impending Disney Interactive layoffs, the company has let go of approximately 700 employees. The staffing reductions come alongside a 50 percent scale back in annual game releases. The division released over 20 titles in 2013.

Disney previously suggested it would be significantly reducing its in-house development, with a new focus on outside licensing partnerships. “We’re not exiting any businesses, and we will pursue licensing partnerships in which we retain a lot of creative input,” Mr. Pitaro said. “But this is a doubling down on mobile and an effort to focus much more intently on a core set of priorities.”

Disney will be combining its successful mobile operation with the flagging social games endeavors. Disney acquired social gaming company Playdom in 2010 for a reported $563 million. Playdom is the studio behind Marvel Avengers Alliance and Disney Worlds of Wonder.

[Source: New York Times] 


Our Take
Disney’s video game endeavors have been struggling over the past couple of years, with Infinity serving as a bright spot. A reorganization and refocusing was inevitable, but the scale of both the pre-layoff staff (approximately 2,700) and the layoffs is staggering. Our thoughts are with those affected.