Sad news today as the Los Angeles Times informs us that Disney’s struggling video game division is expected to begin layoffs again. The staffing cuts could begin as soon as this week and, according to The Wall Street Journal, are expected to affect several hundred people.
Disney’s been struggling for several years now with the profitability, or lack thereof, for their video games division. Black Rock Studios and Propaganda Games (both subsidiaries of Disney Interactive) were closed in 2011, while Epic Mickey developer Junction Point Studios was closed in January of 2013. Additionally, Disney decided to close LucasArts in April of 2013 after their $4 billion acquisition of LucasFilm the previous year.
Currently, Disney Infinity (which released August 2013) has been a huge success for the company. But one successful release doesn’t mean that Disney Interactive is bouncing back from the problem that’s been plaguing them for the last several years.