Disney Closes Canadian Dev Propaganda Games

Amid the news of a guillotine dangling by a thread above the noggin of Blur dev Bizarre Creations, another game studio with a troubled past has been struck with a killing blow.

Vancouver-based Propaganda Games has closed its doors for good, parent-company Disney Interactive confirmed to Joystiq. Disney's decision doesn't come as much of a surprise given the studio's recent--and unfortunate--proclivity for being forced to shelve projects and shed its workforce.

In October 2010, Propaganda saw a promising Pirates of the Caribbean action title, Armada of the Damned, canceled by its parent. Rumors at the time were that, in one fell swoop, Disney hit the developer with a wave of layoffs, affecting "as many as 100" employees.

Pirates of the Caribbean: Armada of the Damned and Tron: Evolution

At the time of the canceled Pirates title, Disney noted that Propaganda would still be active, producing downloadable content for (what would become its last release) Tron: Evolution. It's unclear if more DLC will be released for the game going forward.

In February 2009, sources told me [when I worked at Joystiq] that the team lost "at least 75 employees." Sources also informed me that a planned sequel to 2008's Turok had been canceled due to the reduced team size. (One source provided me with concept art for the project.)

A statement from Disney regarding the closure stated: "Disney Interactive Studios confirms the closure of its Vancouver-based internal game development studio, Propaganda Games. The studio has completed all work associated with its most recent project." Our sympathies go out to those affected by Propaganda's closure.