Entertainment giant Walt Disney Co. (DIS: Quote) 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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