The project is now in the hands of Ubisoft Shanghai, which was aiding in development.

Originally slated to arrive this year, I Am Alive was recently delayed and may not make it out until early 2010. According to an Ubisoft statement posted by Darkworks:

In order to respect the new launch date for this ambitious title, and Darkworks having other obligations, we have mutually decided to complete development of I Am Alive at Ubisoft Shanghai, as the two studios have collaborated on aspects of the title over the past year.

The team at Darkworks has respected its contractual obligations on the project and will be a part of the success of the game when it launches.

While it's rather unusual for a game to switch developers midway through its life, the practice isn't unheard of. Namco recently pulled Splatterhouse away from independent developer BottleRocket with a U-Haul truck, though the game is still due this year.