LucasArts, the video games division of LucasFilms is to be closed by Disney, months after the company acquired it.
The gaming division which was behind many Star Wars video games, is the latest casualty of the deal that saw George Lucas sell his company in October for $4.05 billion.
Since then Disney has announced that it is set to produce a new Star Wars trilogy, the first film to be directed by JJ Abrams, while also cancelling the cartoon series The Clone Wars.
A statement from LucasFilm to Wired read: ““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…As a result of this change, we’ve had layoffs across the organization (sic).”
Production of a new Star Wars game, Star Wars 1313 has also ceased as a result, it has been reported.
The company also created the classic Monkey Island gaming series.