Star Wars: The Force Unleashed II isn't even in stores yet and there's already chatter about the sequel's fate. A new report states that LucasArts is cancelling a third installment in the series.

Kotaku reports that new LucasArts president Paul Meegan has killed TFU3, which was already in development. What's more, many of the TFU2 team members will be axed once that game ships. Another undisclosed project was put on hold as well.

The move is not a simple shift away from internal development, though. Kotaku's sources also state that external development of LucasArts licenses (like Traveler's Tales' Lego Star Wars games) will be winding down, too. Star Wars: The Old Republic would proceed as planned, though.

While these rumored cuts might be true, they don't seem to make much sense for LucasArts. The first Force Unleashed sold extremely well and so have licensed games like Lego Star Wars. Considering the checkered history of Star Wars games, it seems odd that LucasArts would trash its proven winners.

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