Activision has cancelled the video game True Crime: Hong Kong, which was being developed in Vancouver by United Front Games.

Word of the cancellation was made public yesterday as Activision released its 2010 fourth quarter earnings report.

Activision is also killing the Guitar Hero franchise by disbanding the Guitar Hero business unit and ceasing development on the next game planned for that franchise.

“These decisions are based on the desire to focus on the greatest opportunities that the company currently has to create the world’s best interactive entertainment experiences,” the company stated in a release detailing the report.

Representatives from United Front declined to comment, directing me to a statement posted on the company’s website: “We are sorry we did not get a chance to complete this project with Activision, but we understand why. We are both committed to doing quality games and nothing less. Maybe we will have a chance to work together in the future, but in the meantime we are setting our creative sights on a different horizon. You can keep up with the latest developments at UFG here on our site.”

Cross-posted at the Georgia Straight