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Actually answering your question; No, the move to films was not expected. Don't forget you're talking about games announced or mentioned over the course of a decade, mostly in the first half of that time. On the other hand, the decision to move to films was made in a few months after the release of Stranger's Wrath.
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So I think that there is a possibility that an Oddworld movie will see the light...
http://oddworldlibrary.net/archives/...php?menu=CAOM1