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Forums - Gaming Discussion - Disney Interactive hit with huge layoffs

"Beyond Disney Interactive's layoffs today at Junction Point and last week's closure of Propaganda Games, sources tell Joystiq that the division's job cuts go much deeper. We've been informed in this "first round" of layoffs that 250 people have been let go.

Numerous attempts to obtain an official statement from Disney have gone unanswered. There is currently no word on the overall status of Split/Second developer Black Rock Studios nor Warren Spector's Junction Point, which recently released Disney Epic Mickey, a title we've been told has not sold as well as expected. Sources also tell us that the fate of Spector could be separate from that of the studio.

Massive changes at the division have come at a steady clip ever since Disney bought social game developer Playdom for upwards of $563.2 million. Then there was the double-barreled resignation of longtime boss Graham Hopper and bigwig Steve Wadsworth. It is currently the era of James Pitaro and former Playdom CEO John Pleasants, who are seeking not to repeat the division's $234 million loss this fiscal year.

We will continue to follow this story as it develops."

Source: Joystiq

Yes, Junction Point (the Epic Mickey team) got hit with layoffs too. Hope these folks can bounce back.



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"...which recently released Disney Epic Mickey, a title we've been told has not sold as well as expected."

Wasn't there just an NYTImes article stating how pleased Disney was with its first month sales?

Anyways, I hope the best for the guys that just lost their jobs. It's gotta be tough, especially in this economic climate. Good luck to you all.



The Junction Point layoffs may be part of the normal winding-down process that follows a major release.

Because if they're laying off because Epic Mickey didn't sell enough... well, then their expectations were just unreasonable.



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Smeags said:

"...which recently released Disney Epic Mickey, a title we've been told has not sold as well as expected."

Wasn't there just an NYTImes article stating how pleased Disney was with its first month sales?

Anyways, I hope the best for the guys that just lost their jobs. It's gotta be tough, especially in this economic climate. Good luck to you all.


Truth be told, I think joystiq made that out of their ass, these layoffs were coming before epic mickey was released if you followed other video game news websites.

The reason is the new people in charge are trying to right the mistakes of the past financial disaster,  before epic mickey was released.

(If you want to blame one game it would be split/second)



 

famousringo said:

The Junction Point layoffs may be part of the normal winding-down process that follows a major release.

Because if they're laying off because Epic Mickey didn't sell enough... well, then their expectations were just unreasonable.

I linked it a while back, but Warren was talking about how Epic Mickey needed to sell heaps to make Disney happy, that was during a 1UP podcast. I think another source (I'm not sure on this one) was saying that they wanted Epic Mickey to be like Mario Galaxy, which it obviously isn't, but I'm guessing their expectations was within the 4 to 6 million range if so.

It could also be just them trimming fat, but I'm guessing that Disney rushed into this year thinking that they could break into the industry easily, but then they stumbled and crashed before they even became relevant. They'll probably cut their staff in half and then  start aiming for the casual marketplace and I'm guessing we'll see some Mickey Mouse Kart Racer in the future and a bunch of facebook games.



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Doobie_wop said:
famousringo said:

The Junction Point layoffs may be part of the normal winding-down process that follows a major release.

Because if they're laying off because Epic Mickey didn't sell enough... well, then their expectations were just unreasonable.

I linked it a while back, but Warren was talking about how Epic Mickey needed to sell heaps to make Disney happy, that was during a 1UP podcast. I think another source (I'm not sure on this one) was saying that they wanted Epic Mickey to be like Mario Galaxy, which it obviously isn't, but I'm guessing their expectations was within the 4 to 6 million range if so.

It could also be just them trimming fat, but I'm guessing that Disney rushed into this year thinking that they could break into the industry easily, but then they stumbled and crashed before they even became relevant. They'll probably cut their staff in half and then  start aiming for the casual marketplace and I'm guessing we'll see some Mickey Mouse Kart Racer in the future and a bunch of facebook games.

Sadly the second part is what is going to happen. The new two man power trip at disney, said they wanted to go more into social media style games, and what not. 



 

Acevil said:
Smeags said:

"...which recently released Disney Epic Mickey, a title we've been told has not sold as well as expected."

Wasn't there just an NYTImes article stating how pleased Disney was with its first month sales?

Anyways, I hope the best for the guys that just lost their jobs. It's gotta be tough, especially in this economic climate. Good luck to you all.


Truth be told, I think joystiq made that out of their ass, these layoffs were coming before epic mickey was released if you followed other video game news websites.

The reason is the new people in charge are trying to right the mistakes of the past financial disaster,  before epic mickey was released.

(If you want to blame one game it would be split/second)


And that Tron Evolution game, as they closed the entire studio that made that stink pile on PS3 and 360



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Doobie_wop said:
famousringo said:

The Junction Point layoffs may be part of the normal winding-down process that follows a major release.

Because if they're laying off because Epic Mickey didn't sell enough... well, then their expectations were just unreasonable.

I linked it a while back, but Warren was talking about how Epic Mickey needed to sell heaps to make Disney happy, that was during a 1UP podcast. I think another source (I'm not sure on this one) was saying that they wanted Epic Mickey to be like Mario Galaxy, which it obviously isn't, but I'm guessing their expectations was within the 4 to 6 million range if so.

It could also be just them trimming fat, but I'm guessing that Disney rushed into this year thinking that they could break into the industry easily, but then they stumbled and crashed before they even became relevant. They'll probably cut their staff in half and then  start aiming for the casual marketplace and I'm guessing we'll see some Mickey Mouse Kart Racer in the future and a bunch of facebook games.

Disney has all of marvels IP now as far as I know. So any games along those lines may start coming from their studios (i know any dealin place before the buy out will still go to who ever had it but after that). I kind want to see what will come from them in the coming generations. http://money.cnn.com/2009/08/31/news/companies/disney_marvel/index.htm



Well not only did Disney shut down Propaganda but they also fired shit loads at Junction Point. Man if they aren't impressed with selling 1.69 Million copies then what will impress them? Also the game was just released prior to Christmas in a few months it has sold over a million. UbiSoft said 500K would have made RedSteel a success this is 3x that.

Or how about Turom which sold over1.31 million copies (360/PS3) that is a decent sized sale. Considering Epic Mickey even made more then the big HD game it even shows you even more so how well Epic Mickey has sold on Wii alone. Now I admit Tron's 260K was not successful but that was one title.

Its a shame Disney is laying off all these people. I'm not sure if Tron turned a profit but Turok and EpicMickey certainly did. The teams were talented.

I hope Ex-Propaganda and Junction Point employees found new studios. Maybe some good can come from their closures and lay offs!



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They want to make fb games instead of consoles'.

Why do you think they spent nearly a billion to buy Playdom?