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animegaming said:
why don't they just go to a publisher

Because it's a 'spiritual' successor to Eternal Darkness a game with a devoit cult following but not a lot of sales.  Because it's main audience would be on WiiU (which 3rd party publishers consider mostly dead) and because the gameplay looked very dated.  

In short - no publisher would touch it.

 

Shame I would have loved to have seen it.