I think they made the right move. Going onto the original concept for Overstrike certainly seemed the right choice at the time; taking what they learnt in shooters from Resistance with a bit of wacky + third person perspective from Ratchet. I agree with Ted that Resistance had done what it needed to do for the time being.
Somewhere along the way Overstrike got turned into Fuse though. Jury's still out and I'll certainly try it myself at some point in the future, but I think that's when it turned from being a good idea to dump Resistance to being a bad idea. Because if Fuse doesn't take off (and all signs are pointing to it not doing); then they may need something to fall back on.
And I think Ted realises this. He was so open about dropping Resistance like a rock with that video he made at the time. Now, both here and on reddit, his approach has basically been "never say never".
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