Disney Interactive, the troubled digital media subsidiary of Walt Disney Company, said on Thursday it was cutting some 700 jobs in a move reflecting the stiff competition for gamers’ dollars.

The cuts represent about 26 per cent of the company’s 2,800 strong workforce and will involve the closing of offices in Chicago, New Jersey, Colorado, South Korea and Hyderabad, India.

Disney said in a statement the cuts were required in order to focus the company on a “streamlined suite of high-quality digital products.” It said they were a result of this restructuring that was “difficult but necessary given our long-term strategy focused on sustainable profitability and innovation.”

The move comes despite the success of Disney Infinity, a $100-million game available on multiple platforms that incorporates physical toys and characters into game play.

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