Lucasarts recently dropped a significant portion of their staff. It seems that some of their now ex-employees are eager to part with information that Lucasarts employees would be privy to. Aside from learning that the upcoming shooter Fracture is apparently “an absolute piece of garbage,” Kotaku has learned that Knights of the Old Republic 3 is in development and is an MMO.

We know that Bioware is working on a project with Lucasarts. We know that they’re working on an MMO in Austin. It’s not really that far fetched to think.

While Star Wars is certainly seems like a perfect setting for an MMO, it’s obvious that not every developer can do it right. Let’s hope Bioware pulls out something great or everyone will get to experience the overwhelming disappointment of SOE’s effort.

Personally, I’d much rather a new single-player experience with the Mass Effect engine and combat/conversation systems, but I guess we can’t have everything.

Check out the full story over at Kotaku.