Thanks to the skillful reporting of Andrew Yoon from PSP Fanboy, it is widely known that Atari quietly put Earthworm Jim for the PSP “on hold”. Atari released screenshots of Earthworm Jim at last year’s E3 and it was supposed to come out in 2007. Fans were generally excited about the Earthworm Jim revival, which makes it surprising why Atari would stall the project. Maybe something happened when Shiny Entertainment switched hands from Atari to Foundation 9 Entertainment.
The best that Earthworm Jim fans can hope for now is that someone will bring the classic console games to the Wii’s virtual console. If those sell well perhaps Atari will revisit the project in the future.