THQ CEO Brian Farrell has confirmed that the publisher will be dropping Tomonobu Itagaki's Devil's Third, due to an apparent lack of "profitability"
"The profitability profile for Devil's Third no longer met our internal threshold and we are currently in discussions with third parties regarding the future of this title," Farrell said.
"There were a couple of unforeseen events that happened during the development of Devil's Third. One was the company that Valhalla was using for the engine went out of business, so we had to assist Itagaki and the team with a new engine – it took a fair amount of time and cost a fair amount of money."
It's important to note that the game is not technically dead yet, just in limbo, with THQ keen to continue to work with Itagaki in the future, and also see that Devil Third gets picked up elsewhere.
"We think it's an excellent franchise," conitnued Farrell, "we've really enjoyed working with Itagaki-san, and we're going to explore other opportunities with him and others to make sure this product comes to market."
Sadly, THQ's just not in a financial situation to do that currently. [via Joystiq]