Concept art of Dark Side Luke.
Concept art of the game suggests that the story was going to feature "what-if" scenarios. Characters would have their allegiances swapped, examples being Luke Skywalker and Obi-Wan Kenobi as dark side characters, with Maul and Vader as light side characters. Early gameplay footage found on YouTube shows the plot taking place post-Return of the Jedi during battles between the Rebel Alliance and the Imperial Remnant, while taking elements from the prequels. Other plot points that alternated from the established timeline included Anakin encountering and killing Yoda on Naboo, Emperor Palpatine invading said planet, and Anakin openly killing Padmé in a fit of rage.
In December 2007, as Battlefront III was nearly completed, publisher LucasArts and developer Free Radical Design signed a new contract for a sequel, Star Wars: Battlefront IV, requiring Free Radical to further increase its staff. One Free Radical co-director, Steve Ellis, would later describe this a "vote of confidence in us".
In 2008, LucasArts president Jim Ward left and was replaced with Darrell Rodriguez, whose new strategy saw a large portion of the staff being fired. Free Radical was concerned about not being able to reach its deadlines, and their relationship with LucasArts deteriorated. Free Radical composer Graeme Norgate spoke later of "stalling tactics" used by LucasArts, as the publisher refused to validate milestone after milestone for Battlefront III, and was six months late to pay Free Radical. David Doak, Free Radical co-director, would describe the situation as LucasArts trying to cut costs and ditch the project altogether. An ex-LucasArts employee would retort that Free Radical had missed dates and deliveries, even before the departure of Jim Ward, and both Presidents of LucasArts made "many 'good will' whole or partial milestone payments to keep the project going". Eventually, Battlefront III was cancelled around October of 2008, and with it, Battlefront IV, as well.