LucasArts, the game studio that was responsible for hits like the "Monkey Island" series, "Full Throttle" and "Grim Fandango", will be no more. Disney, which acquired LucasFilm back in December for around US$4 billion, has decided to shutdown the unit, and the in the process, lay off some 200 or so employees.
A gaming powerhouse in the 90s, LucasArts has shrunk significantly in the past couple of years. Sales in 2006 was US$173 million and that dropped to just US$55 million last year. Furthermore, the last internally-produced game was "Star Wars: The Force Unleashed II" back in 2010; and the company has been without a president for the past six months.
The closure would also mean that two eagerly-anticipated Star Wars games, "Star Wars: 1313" and "Star Wars: First Assault" will be cancelled. Disney is said to have close down LucasArts to focus on "Disney Infinity" a game which will bring together many of its animated and live-action characters in a "single, costly-to-produce title". Additionally, they have assured fans that this will not mean the end of Star Wars games as future titles could still be made by other studios under license.
Source: Wall Street Journal