A post to the official Daggerdale Facebook page reveals why we've had to wait so long for the game's promised XBLA patch, as well as its long overdue release on the PlayStation Network. As we suspected, the recent layoffs at Bedlam are partially to blame:
We would like to clear up some of the confusion regarding the PSN launch and XBLA update as well as fill in a few blanks on the issues that have been delaying these releases. This was originally intended to be an episodic series, but based on the contents of this post, it wouldn't surprise me if future episodes have been postponed indefinitely.
For PSN, due to the issues that players were experiencing in the XBLA version, the PSN game was put on hold to make sure we had those issues fixed first. The team was working on the XBLA and PSN versions simultaneously and since most of the code between the versions is the same it required re-working.
For XBLA, the initial update that was submitted to Microsoft was rejected due to the size. This new update will essentially delete the original game and replace it with a fully new version rather than stack on a large patch to the game. We've fixed over 80 bugs raised between the forums and additional time in QA. Currently, the update has been submitted to Microsoft and the EARLIEST it can go live is late October.
Aside from these, the team at Bedlam, who built this title, had layoffs and so the bandwidth that was originally dedicated to the title has shrunken which has caused a bit of a split in focus between the versions of the game. This does not mean that those working on the title are not committed, but it does mean that it has taken more time than anticipated to get these out.
We would like to stress that we are dedicated to continuing support for this title. Besides being a top 5 title for the month of June, just last week we released an Avatar Collection for Xbox LIVE. We will continue to provide updates as we get them and hope for these releases to be out for you guys soon.