Here's my conspiracy theory about the whole deal.
The story begins with (yep, you guessed) Castlevania Judgment:
http://gonintendo.com/viewstory.php?id=70182An underseller is very shameful from a japanese perspective, and IGA has more than once in his resume:
http://ps2.ign.com/articles/587/587953p1.htmlEnter Mercurysteam. I like to imagine these guys as no-nonsense game developers who also happen to be Castlevania fanboys. Maybe they found a successful, immediately obvious way to make Castlevania 3D and presented it to Konami. In this scenario, Konami has in one hand a soon-to-be certified Castlevania bomber, and in the other a promising alternative, given the proper budget and exposure.
There's a chance the Alucard game don't even exist. I mean, by the time the Alucard trailer was released Judgment wasn't even out, that implies in a certain moment IGA was involved in THREE game development cycles at once, counting OoE. Now add the Medal (I know, this one is cheap) and Arcade games, probably from other development teams. Now add Lords of Shadow, already a masked Castlevania game (no pun intended) by that time... So, how much love (and money) have Konami to power 6 Castlevania IP projects involving the production of custom arcade cabinets, two next-gen Castlevanias and Patrick Stewart??
Back to subject, IGA (already aware of LoS development and defensive because of the harsh reception in Judgment's showings) could have rushed a trailer with Ayami Kojima's Alucard slapped on it in order to keep fans close to him and his team (and at least with me, it worked.. for a time).
A real game or an act of jealousy? Time will tell. But my guess is that IGA will not develop Castlevania for consoles anymore. Konami is obviously betting high this time, so far they are involving Kojima Productions to blatantly get enough media exposure, which is not necessary a bad thing (Kojima, as a Konami veteran, just Knows what Castlevania is all about).
Why IGA was missing at LoS unveiling? Why his name is completely out of the picture, even as an advisor, so far? I think the man has mixed feelings about all of this, because Konami surgically removed Castlevania from him. He probably will continue producing/directing handheld Castlevanias for the young DSi, but console 'vanias? Not a chance.