It's not all bad news... well, if you were hoping to play the fan remake of Resident Evil 2, I suppose it is bad news. But still, the reason the project is being canceled has to do with Capcom stepping in to make an official Resident Evil 2 remake.
Gamespot picked up word from the creators of the fan project where they issued a statement explaining why the fan project for Resident Evil 2, aptly called Resident Evil 2: Reborn, had its development halted. According to the statement from indie devs InvaderGames...
Contrary to what might be thought, [the announcement of an official remake] is wonderful news for us, [...] As fans, we're so happy that Capcom has decided to take the lead [on] the project.
Capcom stepped in to make an official remake for the 1998 horror-survival title. This was after a lot of fan feedback, a lot of community-made mods, a lot of community-driven remakes and plenty of test concepts of Resident Evil 2 running in the Unreal Engine.
Eventually all of the chatter within the gaming community led Capcom to seriously consider an official remake. I mean, it only took a year and millions of gamers showing support on YouTube videos and other outlets where they wanted to see the classic PSX, N64 and PC title remade for today's generation of gaming consoles.
After a lot of deliberation and getting feedback, Capcom was finally persuaded to go ahead full-time with the production of Resident Evil 2 Remake after producer on the Resident Evil HD Remaster, Yoshiaki Hirabayashi, successfully pitched to the higher-ups at Capcom a way to make the Resident Evil 2 Remake into something that fit with the company's current direction.
This greenlight was due in heavy part to the fact that Resident Evil HD Remaster was a million-plus seller on the market and managed to do so with very moderate marketing.
At this stage in the game, gamers are definitely looking forward to seeing what Capcom will do with the remake. Some are quite leery given Capcom's recent past with DLC and the way they've handled some other properties. However, many more are just excited that one of Capcom's most popular games during the late 1990s is finally getting remade for today's generation of gamer. A lot of hardcore gamers today, in fact, weren't even born when Resident Evil 2 released. So it'll be a treat for them to experience.
What's more is that InvaderGames may have ceased production on their version of the remake but they aren't out of the picture completely. Capcom actually invited them to their studios to discuss their work. This is great news for the indie developers because their unpaid work on an unofficial remake of Resident Evil may have netted them a future job in the industry.
In the meantime gamers will have to wait quite a while for Capcom's rendition of the Resident Evil remake because it's in early development at the moment. Don't expect any substantial news on the progress of the remake until this time next year.