In the midst of a six-month video and computer game sales decline, Disney has stopped production on "Pirates of the Caribbean: Armada of the Damned," the videogame that many saw as the accompaniment to the fourth "Pirates of the Caribbean" movie, due out May 2011.
Disney has already spent millions on production of the game.
"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," Angela Emery, Disney Interactive Studios' vice president of communication, told gaming website Kotaku.
Though Disney is moving its gaming focus from console-based games to online virtual worlds, it is believed this game cancellation was based on poor projected sales.
With the cancellation, Disney has laid off about 100 employees at their Vancouver-based Propaganda Games, leaving the rest to finish "Tron: Evolution," the tie-in to December's "Tron: Legacy" theatrical release.
Sales of games and accessories industry-wide are down 8% from last year, with Microsoft's "Halo" franchise the rare bright spot, selling 3.3 million copies.
