Knights of the Old Republic never really happened. Not only did it not happen a long time ago, in a galaxy far, far away, it never happened in the official Star Wars canon. That's what Lucasfilm is now claiming, along with every comic book, novel and video game to bear the Star Wars moniker.
"[George] Lucas always made it clear that he was not beholden to the EU [Expanded Universe]. He set the films he created as the canon. This includes the six Star Wars episodes, and the many hours of content he developed and produced in Star Wars: The Clone Wars," Lucasfilm stated in a recent blog post on the matter. "These stories are the immovable objects of Star Wars history, the characters and events to which all other tales must align."
I don't think anyone would argue with that - even if we might argue with Lucas' decision to helm the prequels himself. The next part is where things get serious.
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