Disney Issues Order 66 on Star Wars 1313
This doesn't necessarily mean that the project has been fully scrapped though; the script, preexisting development and concept art still remain for Disney to resume whenever they feel that 1313 is ready to return from the netherworld of the Force.
Perhaps the game will get picked up again once 'Star Wars: Episode VII' is released in theaters. Or maybe a game based on the movie will be developed instead. At this point, one thing is clear: we just want to play this game already and hate to see it stuck in development hell.