THQ have confirmed that the rights to Devil's Third, which they dropped a couple of weeks back, have been returned to creator Tomonobu Itagaki and his development company, Valhalla Studios.
"THQ confirms that the company will not be publishing Devil's Third," the publisher told Eurogamer. "All of the game's IP rights have been returned to Itagaki-san and the Valhalla team."
Itagaki told Famitsu that he's glad the situation has been resolved, thanking THQ for giving him back the rights to his creation.
"Most important thing is gamers' happiness. And that of people involved in the business side of things like distributors and the press. And developers. It's a Happy Three. So we can't thank THQ enough. Anyway, we now own the Devil's Third IP," he said.
"Devil's Third development is in its final, most expensive stage now. In the West, we would have needed to spend a great deal on advertising - as much as the game's development cost - to sell a lot. But it wasn't fit for [THQ's] mid-term plan.
"We were distraught, but they were really kind to us. Danny Bilson was searching for a way to work together until the very end. I do appreciate his efforts and those of the THQ managers who signed the transfer contract."