A Disney Interactive representative has confirmed to Joystiq that Pirates of the Caribbean: Armada of the Damned has been sunk down to Davy Jones' locker and will not come to port in 2011 ... or ever. The confirmation comes following rumors reported by Kotaku that the game had been canceled and layoffs had occurred at developer Propaganda Games.

In a statement (in full after the break), Disney Interactive explains that a "restructuring" has occurred at Propaganda Games, "affecting one of the studio's two development teams." Propaganda is still working on this December's Tron: Evolution and its post-release DLC.