"It is not cancelled and will not be cancelled," a Sierra representative informed Destructoid, without elaborating on the details. Developed by Terminal Reality and Red Fly Studio, the game was slated to hit PC, PS2, PS3, 360, Wii and DS this fall.

The panic began yesterday as the newly-formed Activision Blizzard revealed that it would only be publishing five Sierra projects--Crash Bandicoot, Spyro the Dragon, Ice Age, Prototype and an unannounced title--under the Activision Publishing label.

"We are reviewing our options regarding those titles that we will not be publishing," stated Activision Blizzard.

Given Sierra's confidence that the title "will not be cancelled," the entire affair could be nothing more than a misunderstanding, as Activision Blizzard could theoretically publish the majority of Sierra's lineup under the Sierra, not Activision, label.

Alternatively, Sierra's confidence may stem from another solution, such as Ghostbusters being that unannounced fifth title or the securing of a different publisher. Expect more details, and hopefully some clarification, soon.