BioWare and LucasArts have announced they have joined to create an “interactive entertainment product,” adding fuel to the fire of widespread rumors that BioWare’s unannounced MMOG project will take place in the Knights of the Old Republic setting of the Star Wars universe.

LucasArts President Jim Ward said, “LucasArts has a deep commitment to developing compelling stories and characters for the unique medium of interactive entertainment, and we have been searching for a developer that shares this value. We found this in BioWare.Through our previous collaborations, we know that BioWare has an impressive ability to blend gripping stories with technological advancements, and we believe that our upcoming product will deliver an experience that will span the traditional boundaries of video game entertainment.”

“BioWare’s mission is to deliver the best story and character-driven games in the world, delivering powerful emotional experiences to our fans,” said BioWare CEO Ray Muzyka, while Greg Zeschuk, BioWare president, added, “The collaboration with LucasArts allows us to combine our passion for creating high quality and innovative experiences with those of a company dedicated to bringing only the finest games to market.”

Reports of BioWare’s Austin studio working on a Knights of the Old Republic-based MMOG have been widespread but remain officially unconfirmed. The current Star Wars-based MMOG, Star Wars: Galaxies, remains in operation but has seen steadily declining numbers, and although Sony disputes the numbers, made a “best guess” estimate of only 49,000 subscribers as of April 2007, while Primotech recently claimed the game had less than 20,000 active players.

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