According to the said post, this action was taken to 'deliver an experience that players will want to come back to and enjoy for a long time to come' and 'give players a Star Wars adventure of greater depth and breadth to explore'. The initial design shaped the project to be a story-driven linear adventure. Amongst other reasons, Söderlund also mentioned 'fundamental shifts in marketplace'.
This does not mean that the project is canceled. The development will be taken over by EA Vancouver (which had already been involved), with as of the former Visceral staff as possible to be employed by it to continue working on the game. Previously announced to be released in 2019, it has an indefinite release date as of today. It is yet unknown if Amy Hennig will remain the project's director.
Visceral Games was originally founded as EA Redwood Shores in 1998. Apart from its most prominent titles, the studio created the Godfather games series and two of The Lord of the Rings titles.