UPDATE: The US PR wing of EA has rubbished the rumours, calling them "patently false". However, there's been no extra information on the Visceral Montreal situation, nor any comment made on Dead Space 3's performance thus far.
Anyone who reached the end of Dead Space 3 could have been forgiven for naturally assuming that there'd be a fourth game in the series, however it's unlikely for the time being.
A new report suggests that EA has canned development on Dead Space 4 after the recently released Dead Space 3 failed to live up to sales expectations.
According to VideoGamer, an anonymous source "familiar with the unannounced project" revealed that "Dead Space 4 had been in pre-production at Visceral Games, with a small team at Visceral Montreal allegedly tasked with developing prototypes and mock-ups for the title, and collaborating on ideas for the game's narrative".
That would be the same Visceral Montreal team that were marched out of their offices as part of EA's 'transition is our friend' shake-up. It seems the details about company restructuring are slowly starting to emerge.
VideoGamer's source reports that "the project was cancelled after Dead Space 3 failed to meet its sales targets, telling the site that "EA executives visited Visceral Montreal last month to inform staff that the project had been terminated and announce details of the company's restructuring".
Last week, EA Labels boss Frank Gibeau said: "This week we let some people go in Los Angeles, Montreal as well as in some smaller locations. These are good people and we have offered outplacement services and severance packages to ease their transition to a new job."
EA also announced that they'll be stuffing all of their games with microtransactions going forward...although one can't help but wonder if this really is the best route to take going forward.