According to reports, RealNetworks has all but closed its internal game division. All that is left is the Facebook team and a much reduced casual PC design staff. Real is looking to eliminate 85 jobs just three months after cutting 60 positions.

“Real has completely disbanded its first party studio, [following] a batch of layoffs once every quarter since last August,” said a recently laid off insider.

The source indicates that the company’s game portal GameHouse no longer has internal developers for traditional PC casual games, letting go makers of the Super Collapse and Little Shop franchises. The portal will continue to run, and games will be published on Facebook and with second-parties, possibly leading to a sale of the RealGames name and IP.

Source: Gamasutra