The news is hard to bear for fans of the developer's many hit franchises. Founded back in 1982, LucasArts (then known as Lucasfilm Games) initially focused on original games co-created with Atari. The company would find its groove courtesy the then-lucrative adventure game genre, to which it contributed all-time greats like Maniac Mansion and the Monkey Island series. Eventually LucasArts began mining the Star Wars license, leading to terrific franchises like X-Wing, Dark Forces, Battlefront and Knights of the Old Republic, which kicked off the company's collaboration with the hit-making studio, Bioware.

Unfortunately, it made plenty of bad games as well. And in recent years, the company has seemed to be somewhat rudderless, failing to launch a real hit and scrubbing a few promising titles, like a new Battlefront installment and a new entry in the Indiana Jones gaming series. Its last game was last year's Kinect Star Wars, which was savaged by critics.

Once Disney acquired Lucasfilm last October, questions began to swirl about the fate of the gaming arm. While Disney made no announcements and staff kept working on games optimistically, the fact that Disney has been pulling out of internal development for most console and PC games was an ominous sign, though the company also recently revealed an ambitious undertaking in Disney Infinity, a toy/game hybrid based on a variety of Disney franchises.

As for the fate of promising upcoming games like Star Wars: 1313 and Star Wars: First Assault, a Disney spokesperson refutes reports that both have been cancelled.