LucasArts has seen better days as of late.  Along with the recent delay of the next-generation project Star Wars: 1313 and the on-again, off-again announcement of Star Wars: First Assault, rumors are leaking that Disney could possibly be looking into shutting down the developer.

The following report comes courtesy of Gamesindustry.biz

Disney has announced the beginning of production on Star Wars Episode VII, to be directed by noted director JJ Abrams; the cancellation of the acclaimed animated series The Clone Wars after 100 episodes; and Seth Green's planned Star Wars: Detours comedy has been shelved for now. The speculation among Hollywood insiders is that Disney wants to focus efforts on the new movie, and wants to remove possible distractions (other licensed Star Wars shows) from the entertainment landscape.

The last few years have been turbulent for LucasArts, with a series of executive changes and downsizings. Jim Ward headed up the company from 2004 to 2008; he was followed by Howard Roffman as interim until Darrell Rodriguez took over and was replaced by Paul Meegan in 2010; Meegan left in 2012, and the studio has not yet chosen a permanent president.

The game slate for LucasArts has been pared down to only one that's promoted on its web site: Star Wars 1313. The game is a third-person adventure game, and it caused quite a positive buzz at E3 last year. Kotaku has reported that the three different sources told them the game was put on hold since the acquisition, but LucasArts denied this, saying that "Star Wars 1313 continues production." Kotaku also reported that the multiplayer shooter Star Wars: First Assault, may never be released given the uncertainty about the future of LucasArts and its direction.

The company's still up and running for now, but it's hard to see what the future holds.  Here's hoping for the best…