Staff were informed of the shutdown this morning, according to a reliable Kotaku source. Some 150 people were laid off, and both of the studio’s current projects - Star Wars: First Assault and Star Wars 1313 - were canceled.
“After evaluating our position in the games market, we’ve decided to shift LucasArts from an internal development to a licensing model, minimizing the company’s risk while achieving a broader portfolio of quality Star Wars games,” Disney said in a statement. “As a result of this change, we’ve had layoffs across the organization. We are incredibly appreciative and proud of the talented teams who have been developing our new titles.”
This comes after weeks and months of rumors involving the studio, which was acquired by Disney last fall. In September, LucasArts put a freeze on all hiring and product announcements, which many staff saw as the beginning of the end. Today, it’s official: the longrunning studio is no more.