Disney has confirmed that it has closed Vancouver-based Propaganda Games.
The studio had been working on the halted Pirates of the Caribbean: Armada of the Damned game on Xbox 360, PS3 and PC.
Disney also confirmed that all work on film tie-in Tron: Evolution has been finished.
The news comes following Disney's shift in focus from console games to more mobile and casual titles. This was announced in its most recent financial statement.