I used to buy an Aussie gamer's mag regularly some years back. Whilst it's conceivable for a title to be scrapped on a console because a competing console maker told them to (i.e. a contractual reason), games tend to be cancelled because the publisher decides the investment isn't worth it. Hard to believe in your example, but it is possible.

Then too, games have also been cancelled because the publisher has had an issue with the console maker. For instance: SquareSoft ditched Nintendo a few years ago to put Final Fantasy 6 on the PlayStation. AFAIK, SquareSoft had decided they had been under Nintendo's thumb long enough and also didn't like how long it was taking Nintendo to come out with a new console. (This move shocked the Japanese gaming world.)

Wade.