LucasArts has confirmed the Indiana Jones game in development for PS3 and Xbox 360 is still in development, despite the recent lay off of up to 100 staff.
Speaking to Joystiq, the company said there are "no plans to outsource [the game's] development to an external studio".
The title was first unveiled at E3 2006, where an impressive tech demo showed how it'll make use of NaturalMotion's Euphoria animation engine. Read Kristan's full report for more details. Back then the game had a working title of Indiana Jones 2007, but that's since changed for obvious reasons - and there's still no word of an official release date.