Three minutes ago the KS page was updated with...
Perhaps its for the best. An improved and more effective campaign later is better than a failed project now I guess. Disappointing though
EDIT - here is the broadcast from Westwind:
Good afternoon everyone, and thanks for jumping onboard and supporting our Secrets of the Third Reich II project. We were off to a good start but as you know, over the last few days, things have been more or less at a standstill.
We always knew, to complete SoTRII it was going to be a costly exercise. We brought this project to Kickstarter in the hope at we would gain the support to be able to take the game where we wanted to take it, as financial backing for a small business such as West Wind is an absolute must to undertake a project the size of Secrets. All our finger have been well and truly crossed that enough backers would come in to make this possible.
So to conclude, it greatly pains us to say that we have reached the following decision. After long consideration, number crunching to try to make this fit, plus a great deal of soul searching, it is with great regret that we have no alternative but to cancel the project. We have over the last few days looked at all the options to try to work around this to make it financially viable, and please believe us, this is not a decision that we have taken lightly. This is purely a financial business decision that we have had to take. We are very very sorry.
We will not be able to take the project to Kickstarter again in a different format, however, we will be looking at other avenues as a possible way forward outside of Kickstarter, together with John Bailey and Ian Hill.
We know you are going to be disappointed that we are not able to take this project any further here, we too are very disappointed, and we thank you all very much indeed for your commitment and support of ourselves and the project since launch.
With very best regards,
Andy & Wendy Cooper, West Wind Productions
EDIT 2 - Andy later posted on the KS comments section: