Rygar on Wii doesn't seem to be dead. New screenshots of the port surfaced a few days back which gives a pretty good indication that Tecmo hasn't abandoned the project. What about the long delay, though? 1UP's James Mielke has written a blog post which explains why Rygar has not already been released on the Wii. Believe it or not, the port has given Tecmo huge trouble. The company essentially had to retool the entire project after some initial "disastrous results."
