Been moribund for ages. The 90's were really their best period, with very active teams that included some truly creative talent. The parent company also funded them out the wazoo. I was invited to their headquarters when I was working on a preview of one title--and LucasArts was based in a "small" mansion and series of out-buildings once owned by a Gilded Age multimillionaire who wanted a "cottage" to "get away from it all." The main building had winding mahogany staircases, a library with ten foot ceilings and several ladders-in-tracks, and a grand (not a baby grand) piano.
This was where Lucas had built his warren of roughly 30 in-house key development people, with others outside and out-sourced. To say it was a trip, doesn't even come close. And when the PR flack who was shepherding me around tried to tell me that Lucas had read all the books in the library (most of which were from the early part of the last century), I had to bite the inside of my cheek to keep from breaking out in laughter.
But, hey: you give a team great surroundings in which to make something, you provide great benefits and a sensible project schedule, you see to it that everybody is pretty happy, and if you hired well you get results. LucasArts was a top development house in its day.