LucasArts has laid off a small team attached to the early stages of development on Knights of the Old Republic 3, according to a report on GameSpot, as part of what the Californian firm has described as "a major restructuring" of its development studio.
The developer confirmed that as a result of the restructuring effort, "31 people from the development studio were laid off as the company will be concentrating on fewer titles." Some reports suggest that all but one of the developer's internal projects have been canned.
LucasArts has yet to confirm that, although many of its key games are now in the hands of external firms - such as the new Star Wars Episode III title, which is being composed by Indiana Jones And The Emperor's Tomb developer The Collective.
Predictably, the company was unwilling to focus on the issue in any detail. Its Friday statement was actually built around the appointment of a new vice president of product development - Peter Hirschmann, a two-year veteran at the company and former architect of EA's Medal of Honor series.
However, this isn't the first time in recent months that LucasArts has been in trouble. Back in April the company laid off 29 staff, and in mid July a leaked memo allegedly from president Jim Ward announced to staff that there would be no bonuses for the current year.