How is this for an alternative analysis?
Sierra may not want to cancel it, but they sure as hell don't want to spend the amount of cash that relic thinks they need, AND give relic the terms it wants. The two are WAAAAY far apart on their negotiations. So someone at relic starts a rumour that it is cancelled to get fans to demonstrate that there is significant consumer demand for the project. Taking into account the current mood gamers have toward sierra they were sure to get not only die hard fans fighting for it, less motivated fans, and even people just looking for a reason to bitch about sierra.
The final solution, either the two agree on distribution of costs and royalties, or they don't. It is not a matter of sierra just cancelling it, and relic being the poor victim of circumstance.
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