Yesterday brought us shocking news that LucasArts was significantly downsizing its in-house development staff, cutting up to 100 jobs and leaving the future of the company in limbo. Many gamers began speculating on the fate of some previously announced games that now seemed to be in peril due to the cutbacks.

While a lot of things remain up in the air, LucasArts has confirmed that their next-gen Indiana Jones game (read: not LEGO-related) is still being developed internally and there are "no plans to outsource its development to an external studio." The title was first shown at E3 2006, and will feature the same Euphoria engine that will power the upcoming Star Wars: The Force Unleashed.

This news is no doubt music to the ears of fans who were worried that the game would at best be outsourced and at worst be cancelled. Looks like things are carrying on as planned though, and it takes more than massive workforce reduction to keep Dr. Jones from his appointed rounds. Now, if the LucasArts studios had suddenly been flooded with snakes that would be another story entirely.