RollinThundr wrote on May 5, 2012, 16:17: While I don't doubt it happens. And at that happens often. Why would a publisher put money towards a project, especially in LA's case a core franchise involving starwars, and want it to fail
Going by the article, LucasArts basically decided to cancel the project midway through as part of a larger move to significantly reduce their expenses and the number of games in development. For any number of reasons - but most likely the cost of the penalty clause in the development contract - LucasArts sandbagged FRD rather than to outright cancel it.