“While we deeply love King’s Quest here at Telltale, we can confirm that we are no longer working on the franchise. There was a time last year that we investigated partnering with third party developers to produce the game as a partnership but decided against outsourcing. We are not privy to what plans Activision has for the franchise, if any.”
In the same article, Paul Trowe of Replay Games states that Activision is planning on doing something with the King's Quest license. However, it's unknown just exactly what Activision has planned.
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