In case you missed it: last week, Lucasarts fired a bunch of people. Then rumours popped up that Lucasarts would fire even more people. So many, in fact, that they'd cease internal development altogether. Well, we can discount that one (for now). If you remember, Lucasarts told us last week they were "definitely committed to the internal studio", and re-affirmed that yesterday, explaining that work on the non-Lego Indiana Jones title was being done in-house. No comment on whether they'd continue internal development beyond that game, but since it's a whiles off, we can cross that bridge when we get to it.

Source: LucasArts to Halt Internal Development [Shacknews]