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@Deviation59

This is a complicated tale to relate, but L.A. Noire was fully funded by Sony according to Brendan McNamara. Who is the president of Team Bondi. Rockstar was merely to publish the title for them on the PS3. The title was obviously exclusive. Rockstar is developing a exclusive game with a new intellectual property for the PS3, but at this time neither has confirmed what that title will be, but it isn't L.A. Noire. Further more both Take 2 and Rockstar reached this agreement with Sony.

Sony probably feels the money wasn't well spent, and saw no reason to throw good money after bad. They might also have other budget concerns. Exclusive games development may be a finite fund from which to draw. Perhaps a better opportunity for that money has arose recently. Like purchasing an exclusive title nearer to completion, or perhaps to fund what they feel is a better prospect.

This wouldn't be unprecedented for one of the big three to do this. These things do happen occasionally the title is picked up by someone else who is willing to take the risk, on what is basically a half finished game which is probably only half priced. Sony after all has picked up discarded Microsoft titles in recent history.

I would say if the rumor is true it would be interesting to see if either of the other manufacturers pick it up, or another large third party developer. I hope it isn't a case of Sony leaving Rockstar holding the bag.