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Honestly, It's Namco's fault either way more than anything. If they weren't so uptight NDA-heavy - Things would have gone a lot smoother. Not even companies like Sega or Capcom are this NDA heavy. This goes for not just the Klonoa film project, but also voice actors being unable to answer people about what they work on, game developers giving insight on certain games and many more.
I'd like to hear Team Henshin's side of the story before deciding where the fault lies. From the sound of it, Namco wasn't really in a position to tell Henshin what they could or couldn't do.They hadn't been given anything to judge in that regard.
Klonoa was Top 10 Trending when the movie was announced. Feel the only reason it didn't the day of the cancellation was that it was a Holiday Week/end.