THQ has returned all rights of Devil's Third to creator Tomonobu Itagaki and his studio Valhalla.
The publisher confirmed to Eurogamer that the developer has retained all right following confirmation it was dropping the title.
"THQ confirms that the company will not be publishing Devil's Third. All of the game's IP rights have been returned to Itagaki-san and the Valhalla team."
Itagaki had earlier told the latest issue of Famitsu Xbox 360 magazine that they now own the Devil's Third IP.
"Most important thing is gamers' happiness. And people in business side like distributers and presses. And developers. It's a Happy Three. So we can't thank THQ enough. Anyway, we now own the Devil's Third IP," he told Famitsu, in an interview translated by Eurogamer.
He also told the magazine how the game was in its final stages of development, and therefore in a critical phase.
"Devil's Third development is in its final stage now, and is most expensive in this term. In the West, we need to spend a great deal for advertisements - as much as development cost - to sell a lot. But it wasn't fit for [THQ's] mid-term plan.
"They didn't want to part with this IP, but we all have to see into the future and at last they did, for us.
"We were anguished and they were really kind to us. Mr. Danny Bilson was searching for a way to work together until the very end. I do appreciate him and THQ managers that signed the transfer contract."
Devil's Third has been in development since 2009 at Valhalla. It was made official back in 2010.