Walt Disney plans to shut the 30-year-old LucasArts studio it inherited with the acquisition of George Lucas's film company last year, and focus on licensing its Star Wars brand externally.

The closure will involve an unknown number of lay-offs at the company, which has produced games based on the Star Wars and Indiana Jones franchises since being founded by Lucas in 1982.

A "small team" will remain to handle licensing partnerships but all in-house development has been halted, Lucasfilm spokesman Miles Perkins said.

The only two current projects were Star Wars: First Assault and Star Wars 1313, which could survive as licensed or outsourced games.

Notable LucasArts games Day of the Tentacle

Day of the Tentacle Maniac Mansion

Maniac Mansion Monkey Island series

Monkey Island series Grim Fandango

Grim Fandango Indiana Jones series

Indiana Jones series Star Wars Jedi Knight series

Star Wars Jedi Knight series Star Wars: X-Wing vs TIE Fighter

Star Wars: X-Wing vs TIE Fighter Star Wars Force Unleashed 1&2

"Both current Star Wars games projects have been halted," Mr Perkins confirmed to AFP.

He declined to confirm how many jobs will be cut, but said a widely reported figure of 150 "is not correct".

A "small team will be left to manage external partners", he added.

A source close to the company said that affected workers will be informed today.

Lucas, best known as the creator of the Star Wars franchise, sold Lucasfilm to Disney for $US4.05 billion last October.

Disney then announced plans to revive the Star Wars series, starting with a new movie in 2015.

Disney, which 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 humour-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.

LucasArts has facilities in San Francisco and Singapore, its website says, adding that the firm was "dedicated to delivering deeply immersive, visually spectacular and engaging experiences that inspire and amaze generations".

Reuters/AFP