A source familiar with the project told VideoGamer that Dead Space 4, which had been in pre-production, was canceled after Dead Space 3 did not meet the lofty sales goals EA had in mind (reportedly five million). This would basically put it in the same dream-like state that Medal of Honor is in right now.
Honestly, a lot of us saw the writing on the wall. What gets me is that EA demanded that many aspects of Dead Space 3 to be re-worked to "broaden the appeal of the series", including the vanilla "all inclusive" ammo mechanic to accommodate for micro-transactions, and the more action oriented feel.
Then, if this report is correct, it cancels the series after meddling in it. Great work, EA.
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