Why was Days Gone II cancelled
It's quite hard to predict the hype for Days Gone II, given that its predecessor had a mixed track record. However, Days Gone II was rumored to have been canceled sometime last year. However, it's only now that the reason has been known, which officially confirms the rumors.
Had Days Gone II happened, it would have likely been a continuation of Days Gone. The zombie shooter was a PS4 exclusive before being ported for PC.
Sony never revealed the true figures of the game sales, so one can anticipate that the sales may not have been as per expectations initially. At the time of writing, the concurrent players on Steam for Days Gone stand at 3138 players, which is not relatively high for a game of its caliber.
However, the reception of the first game is not the only or principal reason for the cancelation of Days Gone II.
Bend Studio's former Game Director confirms reason for Days Gone II's cancelation
While the actual reason for Days Gone II's cancelation was not known until recently, there was always speculation in the same light. According to reports, Bend Studios had wanted a sequel, but Sony did not give them the green light. Despite the sale numbers, Days Gone's development was a lengthy one, and it was felt that Sony wanted to avoid it once more.
According to Jake Ross, there was a pitch for a new Days Gone game, but that was canceled. He had to wait until now due to a possible NDA that was active until now. Via a tweet from his own handle, Ross claimed how Days Gone had not been deemed successful enough and had yet sold the same copies as Ghost of Tsushima.
It may be the end of the road for Days Gone IP altogether due to critic reviews
With the sequel now officially off, critical reviews of Days Gone could have been a major issue. While the game's 71 Metacritic rating on PlayStation is not the end of the world, it's not as high as games like God of War or Ghost of Tsushima.
This could have been a bigger player in Sony's decision-making, despite the satisfactory sales of Days Gone. While there could be several debates on the topic, one thing is certain - this is the end of the road for Days gone IP.