Disney Interactive Studios has shut down its Vancouver-based development studio Propaganda Games, according to this GameSpot report. Propaganda had just finished the development of TRON: Evolution for various platforms. The tie-in game to the film TRON: Legacy didn't do as well as Disney had hoped.
Propaganda Games was founded in 2005 by ex-EA employees and Disney. The studio hasn't had the best of luck in the last few years. The company saw layoffs in 2009 as it was developing a new Turok game and in October of 2010 saw additional cuts when Disney cancelled the action role-playing game Pirates of the Caribbean: Armada of the Damned.
The studio was fronted by industry veterans Gary McKay, Jorge Freitas, Daryl Anselmo, and Darren Hedges. Excluding their work for Disney, these four collectively contributed to such game franchises as Triple Play Baseball, FIFA, UEFA, Champion's League, World Cup, Def Jam, NBA Street, and SSX.