Disney to shut LucasArts games studio, lay off workers

LOS ANGELES/SAN FRANCISCO Wed Apr 3, 2013 11:57pm IST

Stocks

   

LOS ANGELES/SAN FRANCISCO (Reuters) - Walt Disney Co (DIS.N) plans to shut the 30-year-old LucasArts studio it inherited with the acquisition of George Lucas' film company last year, and focus on licensing its "Star Wars" brand externally, a spokesman said on Wednesday.

The closure will involve an unknown number of layoffs. A "small team" will remain to handle licensing partnerships but all inhouse development has been halted, including its much-anticipated title "Star Wars 1313", said Miles Perkins, a spokesman for Lucasfilm Ltd.

Film producer, screenwriter and director George Lucas is best known as the creator of the "Star Wars" franchise. He sold Lucasfilm to Disney last October.

It is unclear how many people are employed by LucasArts. A source close to the company said that affected workers will be informed on Wednesday.

The Lucasfilm spokesman declined to disclose the number of employees currently at LucasArts or those affected by the shutdown.

Disney, which last year announced it will pay $4.05 billion for Lucasfilm and has its own interactive games division, is several months into an internal cost-cutting review. The decision to shutter LucasArts comes as the developer and publisher, once known for humor-tinged adventure games like "Secret of Monkey Island", has struggled in recent years to produce a hit in an industry increasingly dominated by action-oriented games.

(Editing By Edwin Chan and Grant McCool)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Box Office

ENTERTAINMENT SHOWCASE

Music Charts

Music Charts

Meghan Trainor tops UK music chart for third week running.  Full Article 

Photo

Misty's Body Identified

Actress Misty Upham's body identified by Seattle coroner.  Full Article 

Bono has Glaucoma

Bono has Glaucoma

U2's Bono says glaucoma is reason for trademark sunglasses.  Full Article 

Photo

Works of Frank Gehry

Curvy buildings designed by the world-famous architect.  Slideshow 

Broadway Debut

Broadway Debut

Film director Bill Condon brings 'Side Show' back to Broadway.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage