Greg Yahn, Director of Marketing at WotC, posted an announcement on the Community forums.

"After a lengthy evaluation, Wizards of the Coast has decided not to renew the Star Wars license with Lucasfilm. We’ve had a long and fantastic run, but with the economic downturn, we have made the tough decision to discontinue our Star Wars lines."

Rodney Thompson, lead designer of Star Wars, posted about it as well.

"I'm proud of the Saga Edition books, and think that there's a lot of great gaming in them. I know it'll be my go-to RPG for Star Wars for the foreseeable future.

Where do we go from here? Well, into the Unknown Regions in April, of course, but for me you'll find me where I've been for over a year now, working on Dungeons & Dragons. I hope that, if you've enjoyed my work, you'll come and join me on some D&D books as well (Dark Sun's coming out later this year, folks!). And, of coure, you'll still see me on the message boards, both for Star Wars and for other things."

It sounds to me that it was time to renew the license with LucasFilm and there just wasn't the finances to do that. I'm not a Star Wars player (but a huge fan of the films... well not Episode I), but I think we can thank the Star Wars Saga Edition for helping move RPG's in general forward. Saga Edition had great influence on 3.5 and 4E. There are a number of the Lords of Tyr that play Star Wars regularily. I'm sure they will be saddened to hear this. I guess the silver lining here is that it is still a great game and will still be fun to play for decades. There are people still playing D&D 1st Ed and still enjoying it.

Remember, never throw your old stuff out! Keep it forever. You never know when you will want to have a throwback game, or your kids will want to try playing an old dusty game they find in your library :).