Disney Interactive Studios has announced that internal game development studio, Propaganda Games, has been closed following the developer’s work on Tron: Evolution – The Video Game.

The Vancouver, Canada-based Propaganda Games previously worked on the below-average Turok: The Dinosaur Hunter first-person shooter reboot in 2008, Turok, with work progressing on an action RPG game based on the Pirates of the Caribbean license, subtitled ‘Armada of the Damned,’ until this project was cancelled towards the end of 2010.

This only left the studio to work on Tron: Evolution – The Video Game, a movie tie-in title that released at the end of 2010, as well as that game’s planned downloadable content.

In a statement regarding the closure of Propaganda, Disney said:

“Disney Interactive Studios confirms the closure of its Vancouver-based internal game development studio, Propaganda Games. The studio has completed all work associated with its most recent project.”

Most unfortunate - hopefully all at Propaganda will be able to find work very soon in and around Canada’s burgeoning game development industry!