The game P.T. was a playable teaser for an upcoming Silent Hills game that became very popular very quickly. When the Silent Hills game was cancelled the demo went with it, much to the horror of fans. So when a developer decided to develop a 'spiritual successor' to the undeveloped game there was certainly interest.
Developer Lilith was originally running a Kickstarter to fund the game, but later cancelled it in favour of a publishing deal with Team17. However, seems that now the game has gone the way of the game that inspired it - it's dead.
Hi all. Sadly Allison Road had to be cancelled. Statement to come in the next few days. Thx for all your support and very sad it came 2 this
— Allison Road (@AllisonRoad_HQ) June 5, 2016
The game was announced just over a year ago in May 2015 and was immediately billed as a successful successor to the playable demo P.T. Originally the Kickstarter would have funded the game, but when UK publisher Team17 came in to pick up publishing rights for the game, Lilith claimed that it would offer the developer creative freedom and security.
"Working with Team17 will give us the chance to make our game unhindered creatively, but at the same time will give us the resources, support and experience that only a 25 year old studio can give,” the studio said at the time. “For us it’s an incredible opportunity to be part of a label that looks after not only such a massive gaming franchise, but also supports developers like Playtonic, Mouldy Toof and many others."
A statement is to follow soon, but right now speculation about the game's end is being assumed to be down to a lack of funds to finish the game; something that kills off many indie games. If Team17 pulled out it could have spelt the end of Allison Road.
Until the statement is released though, all we can do is guess.