I don't remember any of this at all happening last year, but doing some research on this canceled Reich game, well, I can see why it was canceled. Ignition Florida was working on this alt-history Nazi game thing until around the time the studio was shut down. Shortly after the closer of the studio, development on Reich was canceled and rumors put it that the game had cost Ignition around $23 million up until the cancellation.
So that's the short version of a really long story. Out of that story though comes some more footage of Reich, which was shown off at Tokyo Game Show 09. Sad that this game ended up suffering the way it did as it looks kind of good.