Why was star wars the force unleashed 3 canceled?

Answer 1

It has not been cancelled as of yet. As the story goes it may have been delayed by the departue of Mr. Blackman halfway through the production of the 2nd installment.

However, the game being developed depends on a number of factors.

A LucasArts insider was quoted as saying the rumors it had been cancelled were untrue, but that they couldn't disclose any of the storyline of the propesed game as they hadn't figured it out yet.

Also, the timeframe for TFU and TFU II was about a year, which still leaves them 2 years to play with. And the same insider as above also said that if a new game was made, it would most probably be TFU III.