Disney Interactive Media Group laid off over 200 employees in an attempt to streamline its video games branch according to the Wall Street Journal. The company also announced that it closed a game development studio based in Canada called Propaganda for the same reason. The company wants to change its focus from producing console video games that cost a lot of money and with little profit, to making to more social and mobile games.

Vancouver-based Propaganda faced 70 layoffs last October when Disney Interactive decided to cancel Pirates of the Caribbean: Armada of the Damned based on the movie franchise according to the LA Times. Disney decided to close the studio after its recent product Tron: Evolution based on the film, presented disappointing sales.

The move was one of the latest since co presidents John Pleasants and James Pitaro took over the video gaming division at Disney last October. They were brought in specifically to increase profitability, cut the fat and restructure Disney’ video games branch.

“Reorganizations require very difficult decisions and this one is no different,” Pleasants and Pitaro wrote in an e-mail sent Monday night to employees.  “We must continuously evaluate our structure and organization and its needs in order to make Disney’s digital content and businesses even more robust and successful,” they added in the e-mail, reported the LA Times on January 26th.

Apparently, the executives forecast further employee cuts down the line. Disney will steer off the risky console video game business, and concentrate more on social games on Facebook and virtual game websites such as Club Penguin. It will also put more energy into making games that can be played on mobile phones. Both social and mobile games have recorded exceptional growth in recent years. Last year, Disney paid $763 million to acquire Playdom, a prominent Facebook game maker, according to the Wall Street Journal.