LucasArts hands employees the pink slip
LucasArts President Jim Ward has confirmed last week's layoff rumors. 31 employees from the development studio were handed the pink slip in an effort to concentrate on fewer titles. LucasArts has also decided to outsource several games to third party developers—Star Wars Episode III will now be handled by The Collective. There have also been rumors that the development of KOTOR 3 was halted. In Ward's words, "[LucasArts needed] to make some fundamental changes."
