Tomonobu Itagaki has had much success in his career with the Dead of Alive and Ninja Gaiden franchises for Tecmo. When he left to form his own Valhalla Game Studios in 2009, he hoped to continue that success with Devil's Third, to be published by THQ.

However, in THQ's financial call today, it was revealed that the title may not see the light of day with as a THQ brand. President and CEO Brian Farrell said the company is in talks with third parties to unload the game after it was determined Devil's Third no longer fit THQ's "profitability profile"

Devil's Third is reportedly complete mechanically, and just needed more content to meet a 2013 release for PlayStation 3 and Xbox 360, with the Wii U as a possibility.