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I own both "Lords of Shadow" games, but haven't played them yet, only read about them.
Apparently the first was a big hit, but they lost the audience with the decision to have much of the sequel take place in a more contemporary, modern-day setting. It seems that most people thought that the gameplay was improved over the first, but the setting and storyline ruined it for them. And so while the first game sold well and was nearly unanimously-praised, the sequel got mixed reviews and sold less. And this all happened right around the time that Konami was more or less just giving up on making games, period, so since it under-performed they just decided that it wasn't worth making any more.
So, it seems like a bit of a mix of "players weren't wholly satisfied with the sequel's direction" along with "Anything that doesn't sell 10 million copies isn't worth the effort for modern-day Konami". Thus, the stalling-out of the franchise entirely.
Having not played either game yet, I can't speak from experience. But I'm personally less enthusiastic about playing a Castlevania game in a "modern" or "contemporary" setting. So I kind of get the complaints. It just feels like something that needs to be more Gothic and "dated", like just set A Long Time Ago rather than Right Now or in the future. I'unno.
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