Telengard
Arcane
Games a lot further along than this get cancelled/assets sold off all the time.Why would they do that? That would be an entirely stupid thing to do after blowing money into a project for 5 years. They could/should minimize the PR costs and maybe think about not putting any more of their money into it (what was that with the German investment firm unrelated to Squeenix?), as well as setting an Ultimatum like SEGA did with Aliens: Colonial Marines for when the game has to be out. But entirely pulling the plug and saying "it's over" at this point in time would be retarded. Even if it only sells like a million copies on Pre-Order hype alone it would still go ways on making some of that money back.That's the writing on the wall, right there. This is turning into another Aliens: Colonial Marines fiasco, not 3 months later, and the game is still over a year away from release.
Any suit with half a brain will see this and pull the plug now. Unfortunately suits with brains are in incredlibly short supply these days.
Remember that for all the games (Tomb Raider, Sleeping Dogs, Hitman) the point was that they made lower than expected sales on them and not that they couldn't recoup the initial investment.
Sleeping Dogs for instance was done in slightly over a year. Squeenix had picked it up August 2 2011 and it released August 13 2012.
Every year a game needs in the oven is additional # of sales that must be made just to recoup costs - in order to pay for the salaries, equipment, power, etc etc. Then there's even more additional costs later, there's boxart, manufacturing, marketing, listing fees,
Why spend additional years, effort, and money on a project that might maybe if you're lucky make some of its losses back, when that same time, effort, and money can be spend making something that might make all of its investment back, make some tasty profit for your bank account, and then also pay off some of the bills of the earlier stinker?