Discussion of Penny Arcade's On the Rain-Slick Precipice of Darkness has received a small resurgence lately. The cancellation of Episode 3, and thus the four-part series, was announced at PAX East last year, though Mike Krahulik and Jerry Holkins continued the narrative on their website so as not to leave fans with an unresolved story which is something I am personally grateful for.
Various reasons were cited, the two primary ones being that Episode 2 only sold one-third of the copies of the first (which I suspect had more to do with the $20 price point than anything) and that Hothead was also working on DeathSpank and the Penny Arcade guys didn't want to strain Hothead's resources by working on two titles at once and produce an inferior product. Depending on how you read between the lines, that sounds a lot like they didn't want their project shuffled off to a B-team, but I can't exactly blame them for that attitude. It was sad news, particularly since DeathSpank and its "wackiness" didn't impress me in the slightest compared to the relatively smarter absurdities of Penny Arcade Adventures, but that's the way things fall out sometimes.
Then out of nowhere a Hothead employee tweeted on January 10th that if Episodes 1 and 2 sold well on the Mac App Store they'd produce Episode 3, which Krahulik promptly contradicted and the studio apologized for the erroneous tweet. Not a big deal, but it seems that it was enough to stir up discussion again as Eurogamer conducted an interview with Joel DeYoung, the director of technology at Hothead.
It's some food for thought on how a game with so much buzz and potential lost steam and had to be canceled, which largely seems due to the workload it put on Krahulik and especially Holkins. It seems like there's an ever-so-slight chance the series could be resurrected, but I wouldn't hold my breath for it, so for now we'll just have to be happy with the ending provided on the Penny Arcade website.