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 cancelled. Disney will still use the LucasArts name to license games, but the studio is no more.
Hypothetically, the company could license First Assault or 1313 to a different developer, but those would be different games entirely.
“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," LucasArts parent company LucasFilm 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. In February, we started hearing rumors that the studio might be shuttered. Today, it's official: the iconic development house is gone.
Although the announcement of Star Wars 1313 perked me up. A gritty Star Wars is what I would like.
Man they got put down old yeller style.