Entertainment giant Walt Disney Co. (DIS) has decided to halt video game development at its Lucasfilm division, reports said Wednesday.
The business was acquired by Disney last year from its founder director George Lucas for about $4 billion. The latest decision is part of the company's efforts to cut costs.
The company's video game unit LucasArts, established in 1982, will now focus on a licensing model instead of internal development. The unit's catalog included "Lego Star Wars" and "Star Wars Battlefront."
Disney expects this change to minimize the company's risk ''while achieving a broader portfolio of quality 'Star Wars' games.''
The number of jobs being affected are not known. The company employs over 1,800 staff. However, according to a report, around 150 employees have been laid off and current projects have been abandoned.
DIS closed down 0.4 percent at $57.25 on Tuesday.
by RTT Staff Writer
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