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Piggybacking on the article TheFedora posted, here is another article from Game Informer that talks about what went wrong with LucasArts. It's really in depth. Page 5 talks about the Indy team's reactions when Uncharted was unveiled.
You can check out the whole article here:
Fall Of The Empire: How Inner Turmoil Brought Down LucasArts
It's a great read.
One LucasArts employee remembers that day well, as a large group of Indiana Jones? developers gathered in a demo room to check out Naughty Dog?s work. ?I have never seen a more f---ing forlorn group of guys, because that is exactly the game they were trying to make,? this staffer says. ?Indiana Jones had a cistern level ? same as in Uncharted ? it had similar jungle environments, too, but one of the big things that they were attempting were those run-for-your-life moments, where something happens, the camera turns, you have a different perspective that shows the danger behind you, and then you have to control the character out of it ? which is exactly what Uncharted did. They had effectively out-Indy?ed Indy.?
You can check out the whole article here:
Fall Of The Empire: How Inner Turmoil Brought Down LucasArts
It's a great read.