[UPDATE] The GameStop-owned Game Informer magazine has obtained a statement from Disney, confirming LucasArts has been closed.

"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," the statement reads.

"As a result of this change, we've had layoffs across the organization. We are incredibly appreciative and proud of the talented teams who have been developing our new titles."

There may be hope for Star Wars 1313, as the representative told the site that it is looking for external partners to help bring the game to market, though nothing has yet been confirmed.

"It is worth noting that we are looking for proven external partners who can help us provide video games to our fans. We still believe in the video game industry, we still will provide Star Wars games, we're just looking at different models rather than internal production… They're evaluating everything. There's always a possibility that it [Star Wars 1313] can still come out via licensing."

Separately, a Disney representative told GameSpot, "Disney Interactive looks forward to working with Lucasfilm on new games opportunities that leverage their incredible IP and brings it to life across gaming platforms."

The original story follows below.

LucasArts is no more. That's according to a Kotaku source, who said Disney has laid off the company's entire staff and canceled all current projects.

The closure took place this morning, the source said, with layoffs estimated to number about 150 people. Star Wars: First Assault and Star Wars 1313 were reportedly both canceled.

This news comes after months of speculation about the future of LucasArts, which Disney acquired, alongside LucasFilm, last October for $4.05 billion. When this deal was announced, LucasArts reportedly froze all hiring and announcements.

LucasArts was most recently known for its Star Wars games, but the studio was also responsible for praised adventure games like The Secret of Monkey Island, Grim Fandango, and Day of the Tentacle, among others.