Oblivion for PSP reportedly cancelled
 

This is from (not always reliable) Kotaku, but the history and evidence says they might just have it right:

This is unfortunate but really not unexpected based on recent history.

No way! Canceled? Beth would murder…or should murder…to get Oblivion out on as many consoles as possible.

They haven't said anything on their site. Let's hope that this isn't true.

Well, if the developer sucked then they might have had no other choice but to cancel this game. But that doesn't have to mean that Oblivion for PSP has completely been abandoned as a concept. They might start from scratch with a new studio. We'll see…

Considering they've been working for a while on it chances are there is considerable investment. Also, it might be the scope of the project compared to the technical realities of the PSP were a poor match - they might have been over-reaching. The dev studio is the same one doing Silent Hill Origins, which has had an on-again, off-again past but now looks decent, so perhaps there is hope.

They haven't had much luck outsourcing since the Call of Cthulhu debacle.

Star Trek Legacy came later … and was really, REALLY bad.