Minutes ago LucasArts announced that they have stopped production on their upcoming adventure game, Sam & Max Freelance Police.

LucasArts' acting General Manager, Michael Nelson, issued the following statement about the game's cancellation: "After careful evaluation of current market place realities and underlying economic considerations, we've decided that this was not the appropriate time to launch a graphic adventure on the PC."

This is a huge blow to adventure gaming and LucasArts both for this year, and in general. Stay tuned to Adventure Gamers throughout the day for more on the cancellation of Sam & Max.