SAN FRANCISCO (CBS SF) – Multiple online outlets are reporting that Disney is shutting down the Bay video game division of LucasFilm and laying off a number of Bay Area employees.

LucasArts will retain a small staff to manage licensing of games created by other companies, according to Gamespot.

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“After evaluating our position in the games market, we’ve decided to shift LucasArts from an internal development to a licensing model, minimizing the company’s risk while achieving a broader portfolio of quality Star Wars games,” reads a statement from the company.

“As a result of this change, we’ve had layoffs across the organization. We are incredibly appreciative and proud of the talented teams who have been developing our new titles.”

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The cuts come just weeks after the elimination of companies ‘Clone Wars’ television series.

Disney completed its acquisition of San Francisco-based Lucasfilm Ltd. for $4.06 billion in cash and stock last December.

The company issued 37.1 million shares and made a cash payment of $2.21 billion to buy the maker of “Star Wars” from its sole owner, George Lucas.

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