They could have hoped for the project to die of natural causes, like it happens to 90% of all fanfic games. Now, after the trailer was released and so on, they realised the game is reaching the completion and the aforementioned hope is lost.
Not that I cheer because of KQIX demise - it was THE only fanmade sequel I actually looked forward to. But I must agree with the sentiment, expressed here as well as in the thread in "Adventure", that undertaking such a high profile violation of copyrights and hoping Vivendi just won't mind was mightily stupid.
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