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That game is going to be amazing.
Most games get cancelled for fairly simple reasons, the most common being bankruptcy of the developer, an example, Interplay recently went bust and their forthcoming, and highly anticipated Fallout 3 sequel went with it.
The good news is that the rights to these game can be bought, so if a developer sees a game that was cancelled and thinks they can make something of it, they'll pick up the rights and develop it themselves. Hence why Fallout 3 is back in development when Bethesda Softworks picked up the rights for the game.