Fans of the first two Penny Arcade Adventures episodes who have been awaiting the third installment for over a year are not going to be happy with this news. Our sister site Joystiq reports from PAX East 2010 that all future planned installments of the adventure-RPG series based on the Penny Arcade web comic strip have now been canceled.

There were supposed to be at least two more episodes of the series following the downloadable release of the first two installments in 2008. However, as we noted earlier this month, the game's developer Hothead Games stated those two episodes "didn't sell as well as we would have liked." Also Hothead just got a big publishing deal from Electronic Arts for their long awaited game DeathSpank. In the end, according to Penny Arcade co-creator Jerry Holkins, the decision was made to cancel future Penny Arcade Adventures episodes rather than have Hothead work on both projects. He states, " . . . we'd rather not do it than do it half-assed." The storyline that was begun in the game will be completed on the Penny Arcade web site.