Right, here's the full story as I've heard it numerous times...
Jazz Jackrabbit 2 was pretty well hailed by every reviewer alive as being a unique kick in the pants from a genre of game (2D platformer) long considered dead. Most of the people who played it loved the game, but sadly, the number of people who bought it was quite dismally low. To date, it remains the only game the Gatering of Developers LOST money on publishing.
See, that's the sorta reputation that follows a game series. Never mind the bestselling status Jazz 1 had in its day.
Afterward, another company (I think it was Lost Boys Software) actually DID begin making a Jazz Jackrabbit 3. They used the Unreal engine to do the job, and from all I've been told, they did a good job with it. Epic was impressed, as well, and they kinda wanted to make it happen.
BUT, as it turns out, Epic doesn't publish their own games anymore. After Unreal was released, they kinda went crazy, or greedy, or something, deciding to ditch all their old games (You can't buy Jazz 1 from 'em anymore) and stop publishing their own games. And remember how Jazz2 never sold well? Nobody ELSE wanted to publish it, either.
Jazz Jackrabbit 3, therefore, kinda ceased production. And Arjan Brusse, the maker of Jazz, kinda said he didn't want to deal with "that green rabbit" for a while.
Best rumor I've heard is that they might release whatever they had as a mod to Unreal/UT. But, as it stands, don't count on Epic to make Jazz Jackrabbit 3...
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