Disney India is apparently shutting down its game development studio Indiagames and will be laying off 30 programmers, testers and artists.
Update: Disney has gotten in touch with NextBigWhat saying that it isn’t shutting down Indiagames but is undertaking a restructuring.
“We are undertaking a restructuring in the Interactive business, aligned with our long-term strategy, that is focused on sustainable profitability and innovation. The intent is to concentrate all our efforts in a few core focus areas of the business given the dynamic nature of the industry we operate in. The Indiagames brand will exist the way it is and will continue to deliver high-quality interactive digital products which include games, apps and other engaging offerings,” said a Disney spokesperson.
Indiagames was one of India’s oldest game development studios in the country and was acquired by Disney for ~$100mn.
According to an NDTV Gadgets, Disney is shutting down the studio since it wants to pivot to a publishing model where all development is outsourced.
However, the report says that high development costs and unrealistic revenue projections is what could have led to the shutting down of the studio.
The latest game to come out of Indiagames’ studio was ICC Pro Cricket 2015. The other game, Cricket Card Battle, stopped receiving updates earlier this year.
Cupcake Dreamland, another game developed by the studio was handed over to Pune-based Appon Software to run live operations and push updates for six months, however the contract was ended in just 2 weeks.
A few of Indiagames’ producers and designers are still on Disney’s payroll. They will most likely collaborate with external development studios to make games for Disney produced Bollywood movies.
Watch IndiaGames’ founder Vishal Gondal share his startup journey at UnPluggd, India’s biggest startup conference.