Updated (2:45pm EST): This should be our final update (I write knowing that I'll probably eat my words). We specifically asked our contact at LucasFilm if Star Wars 1313 was officially canceled.

Their response is brief.

"All internal projects have been halted."

That's a hard stop. While our contact would neither confirm or deny the cancelation of Star Wars 1313, the internal work on the game has been stopped.

They might, however, be able to ship the license to another publisher. If that happens, we'll absolutely bring you the story.

Updated (2:27pm EST): As promised, we are updating this story now that we have an official quote from Disney. This is the full statement from the LucasFilm team in regards to today's events.

"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.  We are incredibly appreciative and proud of the talented teams who have been developing our new titles."

We have reached out again for them to clarify, explicitly, if Star Wars 1313 has been canceled. If and when they do, we'll update this post once more.

Original Story: Disney, the new owners of all things George Lucas, has officially delivered a killing blow to the LucasArts arm of the company. LucasArts is one of the most storied and successful game creation companies in the business, and now the developer has been shut down.

Kotaku has the news coming from an exclusive source. Staff were told this morning that LucasArts is officially no more, and they've all been let go.

This all comes as part of Disney's acquisition of the Lucas properties. They're doing promising work with the film side of the Star Wars equation, but the gaming side has officially taken a massive hit.

Speaking as a fan of the franchise and a gaming writer who sees a lot of previews on a yearly basis, Star Wars 1313 was one of the most promising games this series has ever seen. It looked like a brilliant mash-up of Uncharted and Star Wars, and I was set on loving the crap out of it.

You can read my preview of the game from last year's E3.

For now? LucasArts is done, and one of the best developers in the history of gaming is no more. This is sad.

We've reached out to Disney for comment and will update this story if and when they respond.