LucasArts has denied previous reports that it will be completely closing its games development studio.
Talking to Joystiq, LucasArts rep Margaret Grohne said: "We remain committed to both our internal teams and working with external partners
"[Some reports] are definitely reading too much into the layoffs; [LucasArts] is not halting internal development."
LucasArts' downsizing last week was reportedly due to the firm's decision to start outsourcing a more of its games development. Its internal team is currently finishing Star Wars: The Force Unleashed and will presumably move on to work on the long-in-the-works next-gen Indiana Jones title.