I sincerely doubt Oddworld 4 has been cancelled. OWI would most definitely have told us, and what's more it just doesn't make any sense - at this time I expect a majority of the FMV will be completed, so unless the Inhabitants want to make a complete waste of the last two years, they'll continue to finish the game.
Time will tell. I mean seriously, it's just 60 hours until Oddworld.com is due to be updated with hints about the upcoming game. If anyone runs into Alf in OddChat, be sure to question him about this rumour.
And don't be so quick to blame EGM, they probably didn't start the rumour. I searched Google, but the only reference to cancellation regarding Oddworld was with MO on the PS2. I'd search Penny Arcade!, a remarkable authority on rumours, but my computer right now is about as reliable as a Slig plumber.
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