I don't believe Dragon's Dogma was ever confirmed to be Capcom's most expensive game to date, but it definitely had the largest staff with 150 Capcom employees and another 150 outside contractors. It sounded like they went into development with the expectation that it would appeal to the West and become a new flagship franchise for them, but last month's sales predictions
were only 1.5 million, so I think they eventually lost faith in the title. According to vgchartz.com
they're only about halfway there, and half those sales came from Japan, so it didn't quite reach the intended audience. I doubt they're just gonna throw away the franchise, though. I mean, the name's out there now, so you might as well just hand it off to some C-tier Western studio for some quick and easy cash, no?