Looks like Disney is rethinking it's gaming strategy. Propaganda, the studio developing the Pirates of the Caribbean and Tron titles, has released 100 workers. The Pirates game, Armada of the Damned, has of course been cancelled. But what does this mean for the future of the projects for Propaganda?

"Disney Interactive Studios confirms the cancellation of the Pirates of the Caribbean: Armada of the Damned video game which was scheduled to be released in 2011," said Angela Emery, Disney Interactive Studios' vice president of communication.

"As a result of this decision, Disney Interactive Studios completed a restructuring of Propaganda Games, its Vancouver, BC internal studio, affecting one of the studio's two development teams."

The studio is now expected to assign all remaining staff to finish Tron: Evolution and it's DLC. It's a shame to see that many people getting the ax and a promising MMOG like Armada of the Damned cancelled. Stay tuned to DualShockers for more Disney gaming news and the latest on Propaganda.