Despite the Cthulhu Mythos being copyright-free, we are surprisingly not swimming in Mythos-based videogames or movies, in fact we only have a couple old games (CoC: Dark Corners of the Earth and Eternal Darkness) and a pair of extremely low budget movies. This is why news like the one this thread reports are especially bad. In March 2012, canadian developer Silicon Knights announced they were starting production of a sequel in their most requested franchise, which everyone agreed was Eternal Darkness. Unfortunately, as the studio prepares to close shop for good (most of the employees have been let go and the remaining few are about to) the project has ben canned, along with not one, but two sequels to the disastrous Too Human, no doubt the main reason of the studio's financial debacle.
The last hope at this point is for someone else to pick up the rights to Eternal Darkness and continue where SK left off, maybe Bethesda, considering they already made one Cthulhu game in the past, or maybe Nintendo, since Eternal Darkness has been one of the most iconicGamecube exclusives, though I'm not sure how good it will do to have the game come out on the Wii U, considering by then the PS4 and X720 would have been out for at least acouple years.
One more promising horror franchise goes six feet under, just in case Resident Evil wasn't enough.