Vanillaware Pulls Plug on GRAND KNIGHTS HISTORY North American Localization

With all efforts being thrown into Dragon's Crown for PS Vita, Vanillaware has pulled the plug on Xseed's efforts to localize and publish Grand Knights History in North America. 

Siliconera received an email from Xseed confirming that the developer had cancelled the localization project, citing that all resources are being put toward the upcoming PS Vita title, Dragon's Crown. Grand Knights History was originally shown off at E3 last year and then released in Japan for PSP on September 2011. At last fall's Tokyo Game Show, Vanillaware announced that they definitely had plans to bring the artistic stlyings of this RPG over to the states in 2012, but due to recent events of Atlus taking over the publishing rights from UTV Ignition Entertainment. 

While I can't say that I was expecting something like this to happen it does beg the question of whether or not publishing an already niche game to a smaller market (PSP owners) was a good business decision in lieu of Dragon's Crown coming out for Vita in the near future. I mean, which of these two titles was going to nab the publisher and developer bigger returns? It's really a no-brainer.

Will Grand Knights History's cancellation make you lose any sleep at night?