In an internal memo released last week by Robert Iger, Disney announced it is combining Disney Interactive Studios, its video games division, with the Walt Disney Internet Group, which produces the online games Pirates of the Caribbean Online and Toontown Online. The merged entities will form the Disney Interactive Media Group, putting all of Disney's digital media content under one umbrella. WDIG president Steve Wadsworth will head the new division.

The formation of DIMG is the latest move by Disney to consolidate and streamline its online and digital gaming presence. In February, Disney formed Disney Online Studios to focus on its POTC and Toontown virtual worlds along with in-development Tinker Bell/Fairies and Cars worlds. In May, Disney shuttered Virtual Magic Kingdom, the online game that had been operating under the Parks division.

Sources: LA Times,