It's more the case they decided "not to put it on XBLA now," than never at all. The "perfect place" would be all downloadable channels for Telltale Games; PC, Wii, Xbox 360 and PS3.
"We didn't so much decide not to put it on Xbox Live Arcade as we decided not to put it on XBLA now," Grossman explained to in an interview.
"Normally what we do is PC and one of the other platforms, and we've been bouncing back and forth between them."
"Yeah, I mean I wouldn't rule it out. We might do that one later on." The first episode of the upcoming series arrives on July 7th for PC, with the Wii version to be confirmed yet. They'd really like to expand their games to all digital platforms where ever possible.
"We just haven't gotten there yet," he said. "Ultimately, we would like to be on every downloadable channel there is. We think that's the perfect place for our stuff to be."
"It was just luck of the draw how the business relationships worked out and what chips were falling where. And we have to get our engine working on the platform, which is quite a bit of work, so we only want to do one at a time."
"We wound up doing Xbox," he continued, "but maybe later we'll do PlayStation - we'll see."
Have Telltale Games been good for Sam & Max? Are you worried about what they've got cooking for such a beloved LucasArts classic as Monkey Island?