Propaganda Games -- developer of 2008's Turok reboot and, most recently, Tron: Evolution -- is officially closed. Parent company and publisher Disney Interactive confirmed the unfortunate news to Joystiq this afternoon, issuing this statement: "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."
Propaganda's Pirates of the Caribbean game was canceled last October, and the studio was reduced in size, with the only apparent goal to complete Tron and its planned post-launch DLC. It's as yet unclear if any more DLC will be released beyond the day-one freebie.