RealNetworks’ latest round of re-structuring and layoffs has eliminated about 85 positions including the company’s first-party game development division in Seattle according to an article in Gamasutra.

An anonymous source affected by the layoffs told Gamasutra that Real had “completely disbanded” its first party studio – the group responsible for the Super Collapse and Little Shop franchises. Only a Facebook team and “a minimal casual PC design staff” remain.

According to the article, Real will continue to run its game portal, GameHouse.com, develop games for Facebook, and work with other studios to produce second-party titles.

Update: We spoke with Real Games to get more details. According to Real Games, and they will continue to develop in-house download games in the Eindhoven European office (formally Zylom studios) and as well focus on publishing third-party download titles and invest in mobile and social gaming.

[viaGamasutra]