The cuts are the result of a huge merger that combines the assets of Vivendi Universal, Blizzard, Activision, and Sierra Entertainment, all of which were separate companies at one point but have been stitched together like Frankenstein's Monster to create something huge, lumbering, destructive, and agonizingly stupid.
The games they didn't cancel? Crash Bandicoot, Spyro the Dragon, and Ice Age.
I don't know how many zeroes were on the check or who walked away with the money, but buying a company and then throwing away Brutal Legend and Ghostbusters so you can make more Spyro games is like buying a Shelby Cobra, throwing the car away and keeping the spare tire.
Shamus Young is a programmer and writer by trade, videogame nitpicker by inclination. If you have the patience for more of his ramblings, they can be found at ShamusYoung.com.