Well, maybe cancelled isn’t the right word. Courtesy of Joystiq
“[The game's developer] Hothead has DeathSpank and they have a chance to do something really cool with it,” Jerry Holkins, the other half of the duo, said. “And they need to have an opportunity to make it incredible.” With a recently announced EA Partners … uh, partnership, DeathSpank certainly has some weight behind it. But why not create both titles? Holkins says, “They definitely could’ve done both games. I think they could’ve made DeathSpank and Episode 3 but I think Episode 3 would’ve suffered. I mean, I know it would have suffered. So we’d rather not do it than do it half-assed and so we’re going to finish that story but it’s going to be on our website.”
I think I speak for all of us when I say “Goddamnit!”