Earlier this week news broke that Disney was cancelling its upcoming title Pirates of the Caribbean: Armada of the Damned. This open-world game would deviate from the Pirates storyline and introduce players to Captain Sterling, a pirate who would (based on player choices) rise to either fame or infamy (basically Fable meets Pirates).

Armada of the Damned actually looked rather promising, I didn’t expect much from the storyline, but the opportunity to explore the Pirates universe sounded like it could be a blast.

A Disney rep had this to say, “Disney Interactive Studios confirms the cancellation of the Pirates of the Caribbean: Armada of the Damned video game which was scheduled to be released in 2011. As a result of this decision, Disney Interactive Studios completed a restructuring of Propaganda Games, its Vancouver, BC internal studio, affecting one of the studio’s two development teams. The studio is still in active production of TRON: Evolution, the video game, which will be released on December 7, 2010 with additional DLC (downloadable content) support following the game’s release.”

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