LucasArts, the internal game developer and publisher for Lucasfilm, is being closed down and its employees are being laid off, Disney announced.
Disney acquired LucasArts as part of its $4 billion deal to purchase Lucasfilm and its properties less than a year ago. The company will instead use a licensing model to develop future games based on the Star Wars franchise.
Upcoming games Star Wars 1313 and Star Wars: First Assault have been cancelled as a result of the shut down. Disney said the games could live on through licensing but that appears to be a long-shot at this point.
Star Wars: First Assault is a first-person shooter expected to release as a downloadable title. Rumors suggested the multiplayer title would be setting up a new entry in the Star Wars: Battlefront series.
The licensing model is not unfamiliar to LucasArts, which licensed out games like LEGO Star Wars and Star Wars: Knights of the Old Republic.
LucasArts was founded in 1982 and created games included Star Wars: The Force Unleashed, The Secret of Monkey Island and Grim Fandago. The company spawned famous games industry talent such as Ron Gilbert and Tim Schafer.
Disney already cancelled the Star Wars: The Clone Wars television series along with the comedy Star Wars Detours in favor of working on a new movie trilogy.
While Disney expects to license future Star Wars games, the company is banking on the success of the upcoming NFC-toy game Disney Infinity and the toys required to play the game.