THQ has confirmed that all IP rights to Devil's Third have been returned to creator Tomonobu Itagaki and his studio Valhalla.
"THQ confirms that the company will not be publishing Devil's Third," the publisher told Eurogamer. "All of the game's IP rights have been returned to Itagaki-san and the Valhalla team."
Devil's Third, a third-person action game, is the first game created by Itagaki since he left Tecmo Koei's Team Ninja. THQ dropped the game when it hit financial troubles and reportedly was looking for a publisher to buy the title.
The game has been in development since 2009. It's not clear what will happen to Devil's Third, but it's entirely in Itagaki's hands once more.