Disney, Junction Point hit by layoffs

Staff culled at Mouse House's game studio, Epic Mickey shop according to inside sources and online reports.

Last week, Disney Interactive Studios closed Propaganda Games, the studio behind the Turok reboot and Tron: Evolution. According to the Vancouver Sun, the move displaced approximately 70 people, which represented the remainder of Propaganda's staff after the cancellation of Pirates of the Caribbean: Armada of the Damned shut down one of its two dev teams.

Mass layoffs were reported at Disney today, including its Junction Point studio.

Today, according to online reports and inside sources, the company initiated a second round of layoffs. Sources inside Disney Interactive Studios said an undisclosed number of staffers at its parent, Disney Interactive Media Group, were give the pink slip today. Attempts to get official comment from the studio on the scope of the layoffs were unsuccessful as of press time, but CNBC reports that the layoffs could affect as much as half the game division's entire staff of 700.

Disney also had not commented on reports that Epic Mickey developer Junction Point Studios also met with staff redundancies today. A tweet from developer Bryan Cash, a developer at nearby Austin, Texas, studio Schell Games, said "condolences to those folks laid off from Junction Point." Ironically, the game was a success domestically, reportedly selling 1.3 million units during its first month on the market.

Today's layoffs come just over five months after Disney's game division posted a $65 million quarterly loss--three months after it posted a $55 million loss. It also comes approximately six months after the media multinational spent $563 million acquiring game-maker Playdom as part of an expansion into the casual market. In October, Playdom CEO John Pleasants became co-president of the Disney Interactive Media Group.

Written By

Want the latest news about Disney Epic Mickey?

Disney Epic Mickey

Disney Epic Mickey

Discussion

69 comments
KuRf
KuRf

Meh...another BIG Corporation downsizing to maximising their profit before Fiscal Year end.

Toysoldier34
Toysoldier34

@MooncalfReviews They helped out with Kingdom Hearts and lent the licenses but thats the closest I know.

LordRaymond
LordRaymond

Awn if only they made POTC Armada of the Damned, it could have saved their game division. Oh well just focus on making movies and your good.

daniel_droid
daniel_droid

I hate Disney it needs to go back to heck were it came from!

godzillavskong
godzillavskong

@hannify Where was it told how much they make?I see how much revenue they paid for acquiring Playdom.

deviant74
deviant74

Disney should be making 2 billion a year off games.

MooncalfReviews
MooncalfReviews

I don't think Disney have ever made a good game, have they?

AceCometh
AceCometh

This move is just down right Goofy! These are the people who make things happen, and this is how they're rewarded?

maven_zer09
maven_zer09

condolences to those who have lost their jobs, hope they find a better one at a better place. I hate these kind of news --- and I was hoping for Epic Donald... thank you for bringing Epic Mickey

LeoLex_
LeoLex_

[This message was deleted at the request of a moderator or administrator]

LeoLex_
LeoLex_

[This message was deleted at the request of a moderator or administrator]

-Shadowbinded-
-Shadowbinded-

Good thing Disney teaches us the world is a fantastic place when we're kids... This is just cruel, you shouldn't just wake up one morning and be told you don't have a job, they should've at least given them a heads-up so that they could start looking for jobs elsewhere... My condolences to those who were laid off.

escherfied
escherfied

My best wishes to those who were let go.

KennyKB
KennyKB

Though it doesn't relate ENTIRELY to this article- I just started Epic Mickey a couple days ago and I'm loving it.

The_Gaming_Baby
The_Gaming_Baby

Well the game is finished, of course there will be layoffs.

KaBo0m
KaBo0m

Should have made a better camera for epic mickey

HaLoMaStErJT
HaLoMaStErJT

It sucks that this has to happen to those who work hard on games.

godzillavskong
godzillavskong

@Toysoldier34 True. I was throwing a quick figure out there. Our Regional Director where I work at makes over 150,000 a year, and he really isn't that high up within the company.Market managers make around 80,000, so I can only imagine within a big videogame company like these, how much those CEO's are making.

Taix34
Taix34

In a Time where Finding jobs is Harder.. This is upsetting ;x

yoyou225
yoyou225

I wish good luck for those who lost their jobs. I seriously hope Junction Point stays around. Epic Mickey was awesome (my opinion) So i hope they hold up to make at least a couple more epic games.

Syaz1
Syaz1

disney...just quit the gaming biz and just concentrate on making movies. you obviously suck at managing game devs.

KnightsBlazing
KnightsBlazing

This sucks for those people they finish a game then kicked out the door but its how companies run and I hate it so lets hope they find a new company and make some great games =D @LeoLex_ what are you 12? because only someone of that age could act like such a child so please leave and comeback in a few years once you have matured.

Marzillius
Marzillius

[This message was deleted at the request of a moderator or administrator]

First_Karman
First_Karman

@Jedilink109. It's actually a standard practice in the games and animation industries...laying off employees after they've concluded a project. It's just not reported because as many jobs are created as are lost on a different project. Often though, a large portion of the staff is never hired back on for the new project because new people are being brought in. What's different about this news isn't that the layoffs happened, its that there are no plans for a new project to replace them. Which is understandable, given their yearly losses.

LeoLex_
LeoLex_

[This message was deleted at the request of a moderator or administrator]

nintendians
nintendians

Disney's Turok was okay, little bit great but it left me wanting a bit more challenge to be include. Turok: Dinosaur Hunter for the Nintendo 64 and PC was the best one made by Acclaim Entertainment.

alert0
alert0

They screwed Armada of the Damned over for no explainable reason. They deserve this.

Nuk1euz
Nuk1euz

If they didnt spend so many millions on buying Marvel, they wouldnt need to lay off workers.........just saying lol

Jedilink109
Jedilink109

Isn't it great to know any time you work for a studio that once they finish a game you're going to get kicked out the door? What has the world come to? Gotta fire tons of people once they help you finish a huge project? Ugh. :(

drangel_jam
drangel_jam

I don't quite understand. So Epic Mickey is a huge success, and it's still not enough? Or it's just a matter of direction? 1.7M units sold (CVChartz) isn't enough?

91210user
91210user

It just layoffs, that's all, it's normal with every company that makes a video game and releases it that people move on to other job roles.

hyttenhoof
hyttenhoof

@Boba20077 I have this crazy theory that people might simply not have liked it.

hyttenhoof
hyttenhoof

@Mairusz69 none, lets just get them all out of the way and rename this site 'knitting-spot'. the real question is, how many terrible game devs do we need?

lamprey263
lamprey263

good, both Turok and Tron were horrible, considering Tron's neon lighting world they probably sould have done coordinating project with a studio like Bizarre Creations, they can't get enough of that neon... anyhow, good to see Black Rock Studio is untouched, I'd like to see them make another Split/Second

Mairusz69
Mairusz69

Seriously, how many "Game Developers" do we need anyways?

Toysoldier34
Toysoldier34

@godzillavskong For CEOs make that value monthly or quarterly and your coming closer to it.

Toysoldier34
Toysoldier34

Quality over Quantity. Make good games, make good money. Unless it had Call of Duty in the title or it is made by Apple; for if that is the case go nuts and release whatever you want because people have proven they will buy it regardless.

Sepewrath
Sepewrath

It sucks for people who lose their jobs because the people on top cant do theirs, they make bad decisions like canning that PoTC game which was looking pretty good, but go forward with crap like Tron. Spend half a billion dollars on nothing, you don't see Nintendo doing things like that. They just make games like NSMB with mass market appeal, they are on the right track with things like Epic Mickey. Why spend all that money on some specialty developer, seems like a waste to me.

godzillavskong
godzillavskong

Lets just cut these overpaid CEO's pay instead of laying off the lower end of the work force. It is sad to see people losing their job, but I guess that's part of running a business to maintain a substantial profit margin, and payroll is a big part.I just hate to see this happen, while the CEO isn't willing to take a paycut, and he's raking in over 200,000 annually(estimation).

FallenOneX
FallenOneX

The thing that pisses me off the most when I see studios closing is when the same article mentions that the company that is firing people they've actually been working with recently paid a ridiculous price to purchase another studio in hopes of jumping on to the next big cash-cow craze. You know what sucks even worse? Reading an article a few years from now that says Disney just bought company "XYZ" that was founded by........... EX JUNCTION POINT STAFF!!!!!

japanesegoth
japanesegoth

start at management where they don't really do anything to contribute to development

fattass21
fattass21

wow, its really sad. hope those people find jobs, i know how hard it is now a days. good luck disney!

Boba20077
Boba20077

I like how people say that Epic Mickey sucked, but they haven't played it >_>

yaba
yaba

Let's expand while simultaneously kicking our employees to the curb.

Goyoshi12
Goyoshi12

Don't worry Disney, your corporation has expanded so you can always rely on Touchstone for games! :D Or CAN you?

THA-TODD-BEAST
THA-TODD-BEAST

Not surprising. Epic Mickey was very disappointing. I still can't believe how disappointing it actually was after so much hype!

soulless4now
soulless4now

I'm sure Disney could make some money once existing Marvel licenses expire with other companie. Then make those games themselves and profit. But it's a shame more people in the game industry are getting laid off. That's the scary part about working in it.