According to this (unconfirmed) report on Shacknews, the STFU team will be let go after production wraps and all works-in-progress outsourced.
Following word of routine terminations at develolper LucasArts, a reliable source has informed Shacknews that the company plans to cease internal development and fire roughly 100 more employees after the completion of Star Wars: The Force Unleashed.
LucasArts is known to have at least one other title, an Indiana Jones game, in development. Shacknews was told that, following the team's termination, all other partially-completed internal projects will be outsourced, a move that fits with earlier rumblings.
Why not just let LucasLicensing take over and shut (what's left of) the whole place down?
Source: Shacknews
It's long dead now. I imagine a giant, lumbering zombiefied LucasArts, unaware of its own demise, searching for franchises upon which to feast. I only hope someone does the kind thing and brings a shotgun to its head before it goes for anything I truly hold dear, like another Monkey Island or -heaven forbid- Grim Fandango.
Unless LucasArts really are just bare-facedly lying.
I still have hope for The Force Unleashed, but I'm losing hope for Indy.
I guess only time will tell...
So... Grim Fandango!?
Now I'm more than eager to buy and enjoy TFU. I hope the last effort of LA's once-great internal departement will be worth the wait.
I guess things really are as bad as they seem. The Ward Regime scaled back internal production but attempted to keep it alive, but now the suits controlling that suit want to just license everything out, and in-house production is being eliminated completely. The days of LucasArts as a game developer must surely be limited?