While I was at E3 checking out the spy-themed action/RPG, Alpha Protocol, I chatted with one of the guys from Obsidian, the gang who were originally working on the Aliens RPG. At the time, he told me the game was canceled, and they were just waiting for SEGA to make the announcement. It sounded like the death of the game was purely a financial matter for SEGA who couldn’t afford to keep the development going, but what the game was GOING to be sounded really interesting. Described as a KOTOR-style game in the Aliens universe, the player would be adventuring with a squad of fellow marines with lots of in-game banter (“guess she didn’t like the cornbread either!”)
Now that it’s dead, some concept art has leaked out so we can see what could have been.