Steve Purcell, the creator of Sam'n'Max has made a public statement, commenting on the sudden cancellation of Sam'n'Max 2 (Source):

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LucasArts' sudden decision to stop production on Sam & Max is mystifying. Sam & Max was on schedule and coming together beautifully.

I couldn't have been more pleased with the quality of the writing, gameplay, hilarious animation and the gorgeous 3D world that Mike Stemmle's team has created. The rug has been pulled out from under this brilliant team who've so expertly retooled Sam & Max for the 21st century.

I'm extremely frustrated and disappointed especially for the team who have devoted so much effort and creativity to Sam & Max. It's a shame to think that their accomplishments, as well as the goodwill that has been growing in the gaming press toward this project, will all go to waste due to this shortsighted decision.

Thanks everyone, for continuing to make your feelings known.

--Steve Purcell

Edit: Here's yet another comment from within the company (Source):

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"It was the first cancellation I've ever seen that wasn't due to poor performance on the part of the team," an anonymous Lucasarts employee told us. "I just don't get it."