They were going to make it but they cancelled it. WHY???!!! I bought both Episode 1 and 2. Episode 3 was supposed to have Knuckles.
I guess it's because the previous games weren't that successful, heck, it's impressive that the second episode came out.
I'm pretty upset as well that there won't be a third episode, since the first two were pretty cool, even though they have proven that I suck at Sonic games.
That might be true that the games aren't so successful. But what about sonic 1 or 2 or 3? They never bothered to cancel those but This was because the games were fun