"After a long consideration between Lilith owner Chris Kesler and ourselves, we have reached a mutual agreement to end our collaboration on publishing Allison Road under Team17’s Games label," the publisher said, speaking to VG247.
"We love the concept and value Chris's talent highly, but sometimes things pan out differently than expected, as game development and publishing have so many layers of complexity. The whole team here wish all the best to Chris on his current and future projects for which, before being a business [partners of], we are also a fan."
Allison Road appeared in the wake of Konami cancelling P.T. (Silent Hills) and got off the ground using Steam Greenlight in 2015. Although Lilith initially used Kickstarter for funding, it later partnered with Worms developer Team 17 for a traditional publishing deal.
On June 5, 2016, the official Allison Road Twitter account confirmed the project had been cancelled, and no explanation was provided for why. Following this, the Allison Road Facebook page was updated with a statement. This, however, didn't provide any further insight into why development had been abandoned.
"After a long consideration between Team17 and ourselves, we have reached a mutual agreement to end our collaboration on publishing Allison Road under Team17’s Games label.
"Sometime things pan out differently than expected as game development and publishing have so many layers of complexity. We'd like to especially thank everyone for their support through-out, it has and will always be appreciated."
The original plan was for Allison Road to be released on PC before the end of 2016, followed by Mac, Linux, and console ports after that. As is the case with many cancelled game development projects, we may never know what happened behind the scenes.
from GameSpot http://www.gamespot.com/articles/allison-road-publisher-addresses-cancellation-does/1100-6441027/