The sequel — like the original — was to be a point-and-click adventure game, although this time utilising 3D computer graphics. Mike Stemmle, co-designer of Sam & Max Hit the Road, was the lead director on this project with Steve Purcell contributing story design and concept art. Bill Farmer and Nick Jameson also reprised their roles as the original voices of Sam and Max.
Although concept images, a promotional E3 teaser video, and screenshots were released, LucasArts announced the cancellation of the anticipated title on March 3, 2004, citing "current market place realities and underlying economic considerations" in a short two-sentence press release. The announcement was made near the end of the game's development, just before advertisements and previews for the game were scheduled to appear in magazines.
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