However, I've just spoken to a source in a very good position to know what's up with both games who told me that they're definitely not canceled. Production is expected to continue and the games, both of which are well into development, will come out. But quite possibly not with the developers they're at. It's looking like it could be a "Splatterhouse" situation (if you don't know what that means, find out here).

My source described the situation at both Obsidian and Gearbox as "fluid," having to do mainly with the quality of the work. Sega, apparently, is not seeing what it wants on the schedule it wants to see it. Which is probably why, as Joystiq reported, it has pulled funding and those developers are hurting.​