LucasArts Announces Layoffs In Video Game Division As It Shutters Production

Disney is moving forward with more Star Wars movies, but it won’t be making any more video games based on the franchise. Employees at LucasArts were notified this morning that the Disney-owned company is discontinuing production and that its games strategy will shift to a licensing model. The decision means that more than 150 employees will be laid off, which follows pink slips in the animation division after the announcement that the TV series Star Wars: Clone Wars would be coming to an end as the company heads in a new TV direction. “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”, a Lucas spokesperson said in a statement Tuesday. “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”. Founded in 1982, the company was recently developing the games Star Wars 1313 and Star Wars: First Assault, both of which had their plug pulled by today’s announcement. In an additional statement Disney said that “Disney Interactive looks forward to working with Lucasfilm on new games opportunities that leverage their incredible IP and brings it to life across gaming platforms.” Disney bought Lucasfilm for $4.06 billion in a deal announced October 30.

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