After a period of speculation Obsidian Entertainment have confirmed that the previously announced RPG set in the Alien universe is no longer in development.
This was posted in the official Obsidian forums:
"Rumors have circled around a bit regarding the fate of the Aliens role playing game that Obsidian and SEGA had been working on. Unfortunately, it is true that we are no longer working on the game, and we wanted to finally announce that officially to everyone who has been following its development."
Sega issued the following statement:
"At this point, SEGA has no plans to move forward with the Aliens RPG. The Aliens franchise offers us so much content to choose from that we feel it important to take a step back and carefully consider the type of game we want to release. We plan to continue working with the Aliens franchise and ask fans to be patient and stay tuned for more information about what SEGA has coming out for the Aliens series of games, starting with the upcoming Alien vs. Predator game. We are very excited about and focused on Alien vs. Predator, which promises gamers a fantastic single player game and an equally compelling multiplayer experience. We are confident that it provides all the excitement and fun that the Aliens and Predator fans are looking for!"
In my opinion this is a terrible decision, where Sega chooses to go ahead with two similar products while opting out of a game that could truly captivate the hardcore fans of the universe as well as RPG fans. However, I am sure that more than the above statement has gone into the decision and perhaps the numerous delays on Alpha Protocol have soured relations between developer and publisher to a point where it just wasn't an option to go ahead and move the Alien RPG into full production.