It's no secret that WWE 2K20 was a disaster for 2K's WWE video game franchise, with the game crucified by critics and standing as one of the worst-rated pro wrestling video games ever made. The incredibly poor reception for WWE 2K20 reportedly translated into lower-than-expected sales figures, which has apparently resulted in the cancellation of WWE 2K21.
This news comes from Justin Leeper, who used to work on the WWE series of video games and has retain some reliable sources that are close to the franchise. According to Leeper, 2K is cancelling WWE 2K21, though a different WWE-themed video game will still release this year. This game is reportedly in the works from a different developer than Visual Concepts, though further details are unavailable at the time of this writing.
This isn't the first time Leeper has commented on the state of WWE 2K21. Last December, Leeper released a video where he claimed that "double digit" developers quit the WWE 2K development team after WWE 2K20. He indicated in that video that the WWE 2K21 budget was being slashed as well due to the poor sales for WWE 2K20. None of this was ever verified, though, so fans should still take the information with a grain of salt.
It should also be noted that even though Leeper is more reliable source than most people talking about WWE 2K21 online, there is no evidence to back up his claims. It's quite possible that Leeper is telling the truth, but it's also possible that he has been given some false information from his sources. WWE usually unveils its next video game around SummerSlam time, so whether or not WWE 2K21 has been canceled should be clear within the next few months.
Then again, it's possible that any plans to reveal and showcase WWE 2K21 are being delayed by other circumstances. The ongoing coronavirus pandemic has caused some serious issues when it comes to video game development, and it's possible that it played a role in WWE 2K21's cancellation as well.
WWE is only of the only sports organizations in the world that has continued releasing new content during the pandemic, airing WrestleMania 36 from the Performance Center and planning to continue with live episodes of Raw and SmackDown. However, Vince McMahon is not in charge of the WWE 2K21 video game development, and so he can't force development on the game amid the pandemic in the same way he can continue pushing out new episodes of Raw.
WWE 2K21 is rumored to be canceled.