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The LinkedIn profile of former-Obsidian designer David Kondor states that from April of last year to February of this year, he worked on the now-defunct game in many facets and it is now canceled. This, after rumor of the game's cancellation spread through the Net like wildfire, or, a Xenomorph hive.

Thanks to StrategyInformer for locating the profile!

From his profile:
April 2008 — February 2009 (11 months)
Designer for canceled third-person action Aliens RPG (Xbox 360, PS3, & PC)
-- Responsible for the planning, layout, setup, and tuning of multiple large areas including a Vertical Slice
-- Worked directly with a team of Animators, Artists, Sound Designers, and Writers to ensure consistent area vision and to maintain fun gameplay, visual storytelling, and the atmosphere of the Aliens universe
-- Worked with other Designers to contribute to and improve on the vision of game
-- Designed, Scripted and Balanced Major Combat Encounters and Boss Battles
-- Designed, Implemented, and Iterated on Missions and Scripted Scenes
-- Created and Iterated on initial Area layouts using XSI
-- Worked with programmers to develop & improve on a new In-House Game Engine & Tools

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