While we've only cast a cursory glance towards the Penny Arcade Adventures series by Hothead (the only reason we did at all was due to Ron Gilbert helping out with them), I for one thoroughly enjoyed them. Unfortunately due to flagging interest (both from its creators and the public) Episode 3 is now no more. The story will continue on the Penny Arcade website, if they actually bother to mention it at all this time.
The good news is that DeathSpank is alive and well, and with PAA Ep 3's cancellation Hothead are now focusing all their attention on making it great. Jerry Holkins of Penny Arcade said:
"Hothead has DeathSpank and they have a chance to do something really cool with it, and they need to have an opportunity to make it incredible.."
Source: Joystiq