For years i've known that Kronos has had an e-mail address at their site for people interested in jobs, yet i've never thought of using it for general questions. obviously, we're all a little desperate for information, so I sent an e-mail to it. This is what I sent...

After the announcement that Fear Effect: Inferno has been cancelled, how are you guys doing? Does FE:I have a new publisher? ...Actually, you don't have to answer that. Just tell me if you guys are still even in business or not still!! :-\
Justin Pawlenty and the Fear Effect/Kronos fans

And the next day this is what I got:

Hi Justin
Thanks for your interest in Kronos. We are still in bussiness working
on another project. Unfortunately its confidential, but I think you
will be pleasantly surprised, when its announced. Unfortunately Fear
Effect probably will not get picked up.
Thanks for your support and check in again in a few months, I maybe
able to say more.
Sandy Abe
Kronos Digital Entertainment
150 S. Arroyo Parkway
Pasadena, CA 91105
(626) 666-1138 ext.136
(626) 818-4403 cell phone

Now you know why I call it bittersweet. One on side, Kronos is still in business and making games, which is good. What's bad is that apparently Fear Effect won't be picked up by any publishers.