An interesting document has surfaced recently, discussing Battlefront 3 and the straining relationship between the then-developer Free Radical and LucasArts. The devs claim that it was in fact console versions that killed the game dead.
The document claims Free Radical had never been a gun for hire but the chance to work on a Star Wars title was simply too good to pass up.
In hindsight and if the document's indeed correct, Battlefront III may have been the worst decision they've done, even though initial signs were more than good. Free Radical was signing on for Star Wars: Battlefront IV-VI. It's the stuff dreams are made of, really.
Once Rebellion Developments entered the fray though, things started turning sour. Rebellion were in charge of PlayStation 2 and PSP versions but will eventually take over the PC version as well.
Delays and stability issues prompted a decision to cut down the number of players from 100 to 50. At the same time changes in LucasArts' management bring about massive layoffs and they even refused to pay the developer.
Free Radical was eventually forced into bargaining for their money, accepting severe cuts for having no other choice. Ultimately though, "145 lost their jobs with mere 40 left to keep the company running".
Apparently, the video above marked the timing of the last straw and LucasArts even demanded it taken down. Thankfully, Radical Design declined.
The company was bought by Crytek and now bears the name Crytek UK. However, its intellectual property seems to have been used poorly, and reused even worse. The same document contains a slew of Star Wars: Battlefront III's trademark features.
Rebellion pitched to take over the PC version as well, but the plan ended up backfiring. They failed to deliver on their promises for "low production costs and a tight deadline" on Battlefront III, which ultimately led to the game being cancelled, even though it was practically completed.