I was hoping that PAX East 2010, currently going on in Boston, would finally bring news of a release date for Penny Arcade Adventures Episode 3. Too bad that's not going to happen. Penny Arcade's Mike Krahulik (better known as Gabe) told Joystiq earlier today that "there won't be an Episode 3," which feels just like a punch in the stomach. Apparently, Episode Two only sold about a third of what the first one did, and developer Hothead is now focusing on Ron Gilbert's DeathSpank instead of continuing what was supposed to be a four-episode story. So, yeah, that really sucks.

I was a huge fan of the first two episodes of Penny Arcade Adventures, and as you can tell, I'm pretty disppointed. I loved the blend of adventure and RPG gameplay, as well as the sarcastic humor Gabe and Tycho always bring to the table, and I was totally on board for another episode. When I talked to Mike and Jerry Holkins at New York Comic Con a little over a year ago, they told me that they were "looking over the design document for the third episode right now, trying to make it as good as possible", and that they weren't sure when it would come out. Now we have an answer, but it's definitely not the answer I wanted.