LucasArts fights back, denies halt to internal development

LucasArts has denied previous reports that it will be completely closing its games development studio.

The new comes just hours after Shacknews reported that ‘reliable sources’ told the site that LucasArts would fire a further 100 staff after letting 75-100 staff go last week.

Talking to Joystiq, LucasArts rep Margaret Grohne said: "We remain committed to both our internal teams and working with external partners

"[Some reports] are definitely reading too much into the layoffs; [LucasArts] is not halting internal development."

LucasArts’ downsizing last week was reportedly due to the firm’s decision to start outsourcing a more of its games development. Its internal team is currently finishing Star Wars: The Force Unleashed and will presumably move on to work on the long-in-the-works next-gen Indiana Jones title.