Rumour: Nintendo cancels Eternal Darkness 2 following Silicon Knights' lawsuit loss

According to rumours, Nintendo has chosen to cease production of a sequel to Eternal Darkness following the outcome of Silicon Knights' legal battle with Epic Games.

According to the rumours, posted on NeoGAF, Nintendo has chosen to jump ship due to Silicon Knights' rising debt, compounded by last week's jury decision that ruled in Epic's favour.

"When Nintendo saw that they would need to pay an additional 10 million USD to have the company survive that develops the game, they didn't seem to like it, especially as they wouldn't get anything in return," user Shiggy posted. "NCL reviewed its decision and it appears as if Eternal Darkness 2 is cancelled for now."

Production of the title was seemingly revealed earlier this year when Silicon Knights boss Dennis Dyack announced that the company had commenced work on a next-gen title based on the studio's "most requested" IP.

Thanks, Games On Net.