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The report comes after Sony recently removed the game's announcement trailer from YouTube and social media.
Embracer, Disney, and Sony were reportedly displeased with progress under the previous developer, Aspyr.
Embracer said one of its AAA projects is now being developed by another studio, and it might be the KOTOR remake.
A report says that, following a studio shake-up at developer Aspyr Media, development on the Kotor remake has stalled.
The next Star Wars game release is right around the corner.
Embracer Group says that Knights of the Old Republic won't be a "simple" remake.
From first-person tactical shooters to MMORPGs, there have been a lot of good Star Wars games.
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