THQ has decided to abandon Guillermo del Toro’s horror game inSANE, and has returned all of the IP rights back to the film director. The sad news were announced during an investor conference call today.

“We have decided not to pursue further pre-production on Insane, and have returned all of our IP rights to Guillermo del Toro,” said THQ president Jason Rubin. “By cancelling these explorations outside of our core business, we feel we can improve focus on our core game portfolio, which remains unchanged.”

It isn’t clear exactly how far the first game in the trilogy was into its development. Del Toro himself has said that the first entry is likely two, maybe three years away.

This is the second big cancellation news coming from THQ this year. Last month the publisher has decided to let go of all publishing right to Tomonobu Itagaki’s Devil’s Third.

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