THQ has cancelled work on horror game Insane and given all rights back to film director Guillermo del Toro.
The company announced the news in an investor call today.
Insane, originally slated as a trilogy, was first announced by THQ and del Toro back in 2010. Del Toro had been working on the series with Saints Row studio Volition.
In recent weeks we had heard that development of the game had been moved from Saint's Row studio Volition to Canada, some time closer to the New Year, but we were never able to confirm it. If that was correct, it was apparently a last attempt before the game was axed.
This is the second big game cancellation for the struggling publisher, which announced earlier this year that it would also not be publishing Tomonobu Itagaki's Devil's Third.