I said why earlier, but to sum it up: because the external producers decided it wouldn't make money. 

You guys are all assuming it was gonna be so crappy, but before everyone had high hopes for it...

What makes you think a little puzzle solving, some good boss fights and cool set pieces couldn't have made this game very enjoyable and fun.

The Wii needs action games, hopefully No More Heroes and Rygar deliver.

After thinking about it, I don't think Wii owners should gripe to Nintendo that much.

They're certainly not abandoning the core fanbase...Nintendo is making Metroid 3, Super Mario Galaxy, and Super Smash Bros Brawl...all coming out 2007. I mean, people seem to shrug off the "big 3" as assumed arguments, but these are all HUGE titles made by one company.

If anything, gripe more to the 3rd party developers about making "mini-games."

 Here's to hoping next year they keep rolling out the big non casual franchises and that 3rd parties start making better games on Wii :)

What about Wii Sports, Wii play, Warioware, and Mario Party 8? 

 I'm not assuming anything about the game (especially since I don't believe the rumor yet), I'm just simply stating that a game gets canceled because it gets decided the game isn't going to make money.

Well sure, any game could always have lots of incredible stuff we don't know about. Infact in the case of this game, I was counting on it, as I tend to be a cautious optimist.  But from what we knew of the game, it was you and your hammer. And the title of the game did little to suggest you'd ever do anything more than swing that hammer. Oh sure, There'd probably be some cool things to swing it at, but... you know... A Hammer. 

It kind of gave me the same feelings I had when looking at Previews of Mario Sunshine and Luigi's haunted Mansion. "Mario spends the whole game with a water pack!?" "It's Just Luigi with a vacuum???" I'm sure they were solid games, but it just seemed like a limited gaming experience. And no, I've never played those games and I might be dead wrong, but that's the impression they gave me.

 You're gonna get the Nintendo ppl on your back now, may god have mercy on your soul :D

 Like I said, Nintendo is making Metroid, Super Mario Galaxy, and Super Smash Bros Brawl.  Three very large, important, and hopefully quality titles.  Those titles, along with Sports, Play, WarioWare, and Mario Party are a lot for Nintendo to make.

Of course Nintendo is making games like Wii Sports, that's the whole ticket to expanding the market.  But they're still making 3 very big games this year...so I don't know what the complaint is.  And it's not like WarioWare and Mario Party are crap...it still took some work for those too, and they're a lot of fun.

EA, on the other hand, seems to be going the casual route, as well as Ubisoft, although there is Red Steel and SSX Blur.

My point is, yes there's plenty of casual games on the market, but Nintendo is making some HUGE quality titles to be released later this year...so I don't see what people are griping about.

I'm with obi-wan on this. There is no reason to panic or gloat.

First, this is a rumor. A rumor from a generally reputable source but a rumor nonetheless.

Second, this is Project H.A.M.M.E.R. we are talking about. It's a simple beat em up game with giant robots and hammers. Hammers they use to beat each other up with, huh?

Third, if this game is being cancelled for "expanded audience" games that doesn't mean there aren't plenty of core gamer games on their way.

Fourth, I wonder if the leak and the cancelling of the game has something to do with NST. Looking at their Wikipedia page they had some big games back in the N64 and early GCN days but since then it's been compilations of old console games and handheld games. Maybe they weren't up to making a brand new IP worthy of Nintendo and got busted down to mini-game compilations. That would explain the bitterness that would result in a leak from a company notorious for ultra-secrecy on even the smallest things.