Los Angeles – Disney (NYSE:  DIS) is laying off as many as half of the 700
employees in its video game unit as part of an internal restructuring, CNBC
reported. Disney Interactive Studios confirmed for Austin360 that minimal
layoffs affected Junction Point Studios, whose "Epic Mickey" title
for Nintendo Wii sold 1.3 million copies in December.

Disney’s Vancouver-based
Propaganda Studios was shuttered last week, after cancelling its "Pirates
of the Caribbean" massively multiplayer game in mid-development last fall.

Since Disney
acquired social games publisher Playdom for $763 million last summer, the
company has seen the departure of Interactive Media Group head Steve Wadsworh,
as well as Disney Interactive Studios general manager Graham Hopper.



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