IGN has heard from multiple sources (both internally at LucasArts and elsewhere) involved in the long-in-development Indiana Jones title for Xbox 360 and PS3 that the game has been cancelled. Unofficially we've heard that developers are being reallocated to other projects and that the new Indiana Jones project that we last reported on in April 2006 is dead in the water.
If true, this should come as no real surprise as the game has gone dark for nearly the last three years, and with its total absence at last year's E3, this seemed like it was only a matter of time.
The official word from LucasArts public relations is the usual "We don't comment on rumors or speculation" line, but we're hearing otherwise from our sources. Stay tuned to IGN.com for more.