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ikilledkenny said:
Games have been totally scrapped before. Ever hear of Resident Evil 1.5?

But the main reason they don't is because of how much money they pour in. They hope that if they release it, they will reduce the loss.

Resident Evil 1.5 was the code name for Resident Evil 2 when it was in development. Capcom didn't want any of its design team to know they were working on RE2 due to the high level of expectations the gaming industry was placing on it. 

How do I know this? I doctored the original game script. I worked for Capcom from '97-99.