As usual, nothing is official as of now and so on. You know the drill.
Speaking on condition of anonymity, a source familiar with the unannounced project told VideoGamer.com that Dead Space 4 had been in pre-production at Visceral Games, with a small team at Visceral Montreal allegedly tasked with developing prototypes and mock-ups for the title, and collaborating on ideas for the game's narrative.
However, the project was cancelled after Dead Space 3 failed to meet its sales targets, our source claims, telling us that EA executives visited Visceral Montreal last month to inform staff that the project had been terminated and announce details of the company's restructuring.
Visceral Montreal is rumoured to have closed following the restructuring.
Last I heard, it sold around 900k copies which falls a bit short of what they wanted which was 5 million sold copies. Note, wanted, not needed, shareholders can be quite demanding. I'm sure people could point at dozens of reasons why it sold less at launch than DS2 but personally, I just don't think as many people were interested this time round rather than being angry at any given feature though they probably added up a small fraction of lost sales.
So many games these days are trying to be a jack of all trades but master of none rather than focusing on elements or settings that made them stand out from the crowd in the first place.