A message board post, made by Capcom strategic planning VP Christian Svensson, stated that the "the costs of moving forward outweighted the potential revenue."
Now, Capcom senior communication director Chris Kramer has stepped in with a blog post, in which he apologizes for the cancellation and expands upon it.
"I'd like to apologize to Talisman fans who have been waiting for the digital version of the game," wrote Kramer. "As a company, we felt that it was better to shut down the project early, rather than to publish something that would not do the original source material justice or compromise the fun of the Talisman experience."
Capcom production director Adam Boyes also touched on the subject in a recent interview with GiantRealm, stating that while the now-cancelled project "still felt like Talisman," that was "why it didn't work as well in the downloadable space."
With Talisman described by interviewer Gus Mastrapa as a boiled down version of a pencil and paper RPG, Boyes explained that lengthy games like Talisman simply don't work in the downloadable arena.
"Pencil and paper games are very long, and they command healthy social interaction," said Boyes. "Downloadables with super-long play time don't work well on the service, and we can't guarantee the quality of social interaction to have players stomach those long play times."
"When we did finally cancel the project, we did it with the blessing from Games Workshop and had a very amicable discussion," he added.
Man, I was looking forward to this game. I'm glad they admin there were problems, and that it wasn't just a financial decision in the long run. (Hint, it doesn't have to be dl'able, boys!)