Update: EA's Peter Moore has called Videogamer's report a "fabrication" in a comment on GamesIndustry.biz, shortly after the publisher's US corportate communications team issued a statement calling the news of Dead Space 4's cancellation "patently false."
Moore called the report "Standard, shoddy website journalism recipe, born out of a desperate need to increase click-thru rates to support advertising revenue".
An official response from EA stated, "While we have not announced sales for Dead Space 3, we are proud of the game and the franchise remains an important IP to EA".
Videogamer also issued a statement of its own, saying it was 'perplexed' that EA refused to comment on the report when requested to do so before it was published.
Original story:EA has reportedly stopped development on Dead Space 4 following the poor sales of recently released Dead Space 3.
Videogamer is reporting that Dead Space 4 was in pre-production at Visceral Games and Visceral Montreal. The Montreal studio was recently shut down.
In related news, EA has also shuttered EA San Francisco, which was working on Dragon Age: Legends, and has worked on spin-offs off popular EA franchises, such as Dragon Age and Mirror's Edge.
EA's Frank Gibeau had last month announced that there were layoffs at EA's Los Angeles and Montreal studios. He also stated that a game would need to sell 5 million units for EA to continue pushing the franchise, a figure it seems to think Dead Space 3 won't reach.
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