Game over for LucasArts studio

    Disney today said it will shutter game studio LucasArts in favor of a licensing model leveraging the popular Star Wars brand and other properties.

According to a LucasArts statement, the transition will require layoffs at the game studio, best known for its series of Star Wars titles as well as classic adventure games such as The Secret of Monkey Island.

"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," reads the statement.

In a separate statement, Disney Interactive — the company's video game label — says it "looks forward to working with Lucasfilm on new games opportunities that leverage their incredible IP (intellectual property) and brings it to life across gaming platforms."

Additionally, Lucasfilm says development on future projects such as the action titleStar Wars 1313 has been "halted."

In October, Disney acquired Lucasfilm in a blockbuster deal worth $4 billion, giving it rights to the company's lucrative Star Wars franchise.

The move is the latest in Disney's larger plan to reorganize its games business, focusing on projects such as Disney Infinity, which combines video games with collectible figurines players can bring to life, as well as titles for the Web and mobile devices.

"Layoffs are going to continue to happen fairly regularly in the video game space as companies figure out how to either re-tool for all the mobile opportunities, or how to re-deploy other assets such as licensing out their intellectual properties," says Digital World Research analyst P.J. McNealy.

In January, Disney shut down Junction Point Studios, which developed the series Epic Mickey for video game consoles. While the first title for the Nintendo Wii was a success, the sequel Epic Mickey 2: The Power of Two faltered despite expanding to additional platforms.

Founded in 1982, LucasArts has a rich history in the video game industry thanks to both Star Wars and its impressive stable of early adventure games for the PC, including The Secret of Monkey Island, Maniac Mansion and Grim Fandango.

Despite the demise of LucasArts, the Star Wars franchise won't disappear from video games anytime soon.

"With Disney now potentially licensing Star Wars out to external developers, the potential for future great versions of the game will grow," says McNealy. "Any platform, whether it be iOS, Android, Xbox, PlayStation or Nintendo, will always want Star Warsgames available."