[Tracker]

Originally Posted by Capo

That was not the problem, the quality was pretty high, the problem was that you cant make a lot of money with graphics adventures, and blizzard wants a lot of money.

However as the 1998 Electronic Entertainment Expo (E3) in Atlanta was approaching, Blizzard became increasingly aware that implementing the proposed changes would result in them being unable to meet their already extended 1998 deadline. LucasArts had released their (competing) title Monkey Island III in the fall of 1997, and had announced their next adventure game title Grim Fandango sporting a 3D engine. In comparison producer Bill Roper felt WarCraft Adventures looked dated;

I think that one of the big problems with WarCraft Adventures was that we were actually creating a traditional adventure game, and what people expected from an adventure game, and very honestly what we expected from an adventure game, changed over the course of the project. And when we got to the point where we cancelled it, it was just because we looked at where we were and said, you know, this would have been great three years ago.
—[1]

After over a year of hard work, press tours, magazine covers, and fan fervor Blizzard announced that WarCraft Adventures: Lord of the Clans was cancelled days before E3. Within hours of the announcement fans of the series formed an online petition, demanding the project be resurrected. On the 22nd of May 1998, Blizzard responded via their website;

Blizzard Announcement — 22 May 1998
Press Desk: Blizzard Cancels WarCraft Adventures

Blizzard wants to take a minute to respond to the Warcraft Adventures petition that is circulating on the Internet. First, we want to express our gratitude to the Warcraft fans that took the time to organize such an effort. We recognize that the cancellation of Warcraft Adventures has disappointed some of our customers, and we appreciate that they have shared their opinions with us.

Secondly, we want let you know that stopping development was not a decision that was taken lightly. It was a hard call to make, but each of us knows that it was the right choice. The cancellation was not a business or marketing decision or even a statement about the adventure genre. The decision centered around the level of value that we want to give our customers. In essence, it was a case of stepping up and really proving to ourselves and gamers that we will not sell out on the quality of our games.
And finally, we hope that Warcraft fans will consider our track record and trust our judgement on ending the project. The cancellation of Warcraft Adventures does not signal the demise of Azeroth. We have every intention of returning to the Warcraft world because there are still chapters to be told. We will keep you informed as we announce future Warcraft plans.

Quoted from Wikipedia.

Blizzard should have given a contract LucasArts to ensure the quality of the product.