LucasArts has posted the announcement of cancellation of Sam & Max Freelance Police, planned as a sequel to Sam & Max Hit the Road, their classic adventure game (thanks Quboid). Word is:

"After careful evaluation of current market place realities and underlying economic considerations, we've decided that this was not the appropriate time to launch a graphic adventure on the PC" says Mike Nelson, Acting General Manager and VP of Finance and Operations. There is currently no plan to reduce staff.