There were numerous attempts to ressurect that project on Xbox and PC, too. Guess it wasn't meant to be.
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They probably canned it because of the arcade-style experience that was presented in this game. You know how bad home ports from arcades were right? None of those companies ever wanted us to have that. It's a conspiracy I tell ya!
Streets of Rage 4
Castlevania Ressurection
And what the hell Castlevania game is this?!
http://www.actiontattoos.com/castlevania/shin2.jpg
http://www.actiontattoos.com/castlevania/shin1.jpg
-edit- Just a hoax
I stumbled on an interesting cancelled game I had never heard of called TomCat. It was a 3D multiplayer flight combat game (in the same genre as, say, WingWar or Propeller Arena), made by Atari in 1983. It had multiple cabs networked and players could face off against each other. Atari got into financial trouble and were never able to finish it, and eventually scrapped it, but it's an interesting bit of history.
Incidentally, this happens because publishers conduct ongoing cost/risk analyses of the games they bankroll, and if at some point they feel that not releasing the game will cost them less than releasing the game, they'll cancel it, even if it's at the last minute. If a game is never released they can write off all the money they spent on it as R&D cost on their income tax and get a break on it. If they release the game they can't use the cost against their income tax, so they'd rather save money by not releasing potentially poorly selling games at all.
Man, I remember wanting Starfox 2 so bad.