Kotaku, video game journalist Geoff Keighley, and RebelForce Radio are reporting that LucasArts will no longer develop games, moving to licensing only, and starting layoffs, effectively shutting down altogether.

RebelForce Radio just posted the following from Lucasarts:
“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.”
So, Disney has already cancelled the 3D releases, The Clone Wars, Detours, and now 1313, First Assault, and the planned-but-not-announced Battlefront III, all while laying off a ton of dedicated employees just so JJ Abrams can make Episode VII. (Not to mention Hasbro's own questionable, though unrelated, moves lately.) I'm waiting to hear that this has all been one elaborate April Fools joke. It's not like LucasArts hasn't been without its own issues the past several years, but a shutdown just sucks.