Ludosity, the developers of Ittle Dew 2, have recently entered a feud with Nicalis, the company that published Ittle Dew 2 on all console storefronts. Nicalis has been criticized over allegations of rampant racism and abuse, and Ludosity wanted to stop conducting business with them.
Though Ludosity contacted Nicalis 6 months ago, letting them know that they're canceling their license to publish Ittle Dew 2, Nicalis only responded a few weeks back, confirming an agreement to transfer the rights over to Ludosity. This never happened.
Instead, claims Twitter user @reallyjoel, a developer from Ludosity, Nicalis avoided any sort of communication with the creators of Ittle Dew 2. Instead of transferring the rights to their games, Nicalis opted to delist all of Ludosity's games from console storefronts. "Another promise to us they just straight up broke - and a shitty move for the customers," says the developer.
The next move for Ludosity will be to see about getting Ittle Dew 2 back for sale on consoles, though it's good news that the game is still freely available via Steam.
It was just a few days back that we heard that Edmund McMillen, the creator of Binding of Isaac, has also halted his plans to work with Nicalis due to to allegations of misconduct. What this means for the company we do not yet know, but it's not looking good.