While most will not care that Disney Interactive has cancelled the Pirates of the Caribbean: Armada of the Damned, some will be discouraged to hear that developer Propaganda Games has laid off a number of employees as a side effect. The company is also working on the upcoming Tron: Evolution game and the DLC that will follow the game's release in December. That development team remains unscathed.
Here is the official statement from an unnamed Disney Interactive representative (from Joystiq):
"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. 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 still in active production of Tron: Evolution, the video game, which will be released on December 7, 2010 with additional DLC (downloadable content) support following the game's release.