Rumors about the game's cancellation have been swirling for months and Obsidian has finally revealed that the project has in fact been shut down. "Unfortunately, it is true that we are no longer working on the game, and we wanted to finally announce that officially to everyone who has been following its development," an admin wrote on the Obsidian forums. "We're going to keep this forum up for another week for archival purposes and to allow you guys to finish up any open threads, and then we will shut it down since it is no longer a product that is in development. All of us here at Obsidian would like to thank you for your interest and support during its development."
In a statement to GameSpot, Sega, the game's planned publisher, added that it has "no plans to move forward with the Aliens RPG."
"The Aliens franchise offers us so much content to choose from that we feel it important to take a step back and carefully consider the type of game we want to release," a company representative said. "We plan to continue working with the Aliens franchise and ask fans to be patient and stay tuned for more information about what Sega has coming out for the Aliens series of games, starting with the upcoming Alien vs. Predator game."
It's bad news for fans of the Alien series but fortunately not the end of the line for people looking for something new and awesome from Obsidian: The studio is still hard at work on the new Fallout game, Fallout: New Vegas.