Here is the full statement from Jeff

UNITY IS CANCELLED

Lionhead Studios and Jeff Minter have come to a mutual decision to cancel their collaborative project Unity with immediate effect. Unity was always an ambitious and experimental project and as is the case with such endeavours they do not always come to fruition.

Both Lionhead and Jeff are disappointed that it has been necessary to take this step despite significant publisher interest. However, a shared commitment to excellence and originality meant both sides agree that the cancellation of the project was in everyone's best interests.

Relations between Jeff and Lionhead remain strong and both sides have enjoyed working together over the past two years.

Commenting on the decision to halt work on Unity, Peter Molyneux said, "Everyone at Lionhead has the utmost respect and admiration for Jeff's unique talents. However, we've both been in the industry a long time and it was becoming increasingly apparent to us that we would not be able to finish Unity in an acceptable time frame. On a personal level, I have very much enjoyed working with Jeff."

Jeff Minter responded, "Everyone at Lionhead has been incredibly supportive and the decision to stop working on Unity has been a difficult one for us. But being realistic, I felt it was better for everyone concerned that we cease work on Unity. I'd like to thank Lionhead for all their help and support over the past two years."

You can see a statement from Jeff over at YakYak forums follow the link.