Space Quest 7 was to be the seventh installment in Sierra's popular Space Quest
series, before a series of corporate buy-outs, takeovers and nonsensical restructurization brought the virtual end of adventure gaming
It was to be designed by Scott Murphy (one of the original Two Guys from Andromeda, who designed the first Space Quest game in 1986) and Leslie Balfour.
On Christmas Eve 1997, Scott Murphy was informed by the project leader that SQ7 was cancelled. However, fans were informed that the project was merely "on hold", to avoid a barrage of steamy letters.
Regardless, fans still broke down the doors of Sierra, but the new management - whom Leslie once described to me as "a gang of walking suits who wouldn't know a game design from their own asshole" - wouldn't hear of it.
Since Sierra still holds copyright to the Space Quest series and all the characters, with no intention of reviving it, Space Quest can safely be considered DEAD.
Update (March 30th 2002): It seems Sierra is somewhat pulling themselves together. There has been talk of reviving the old games - notably Leisure Suit Larry and Space Quest - and have even been talking with the original designers about possible future collaborations. Will this venture come to pants-staining fruition? Or will it bomb in much the same way as Mask of Eternity left a permanent scar in the psyche of every King's Quest player on Earth? Only time - and money - will tell.