The Godfather may be the boss of the mafia, but he still answers to a bigger boss - his publisher! Despite his swagger and thug-smoking powers, Electronic Arts remains his real Corleone, and according to EA Games' president Frank Gibeau, "We're not going to do another one." After getting rescued by EA Games after his old family, Brash Entertainment, went out of business, the Godfather may need to go look for another family for publishing.
Someone must've forgotten to call Paramount Digital Entertainment, because their rep replied, ""Plans for the next Godfather game have not been decided." So now it seems that Gibeau must've slipped a word-misuse that lead to a different meaning than the one he intended. According to this email sent to the Los Angeles Times by an EA publicist, "We do not currently have a Godfather game in development," she said. "Nothing has been decided as to future sequels. Paramount is a great partner."
EA has already dropped major licenses like this one before - James Bond went to Activision back in 2006, and The Lord of the Rings: White Council got halted in 2007. With a lackluster sales performance for Godfather II (Xbox 360, PS3) since its release, it's likely that Godfather's non-publishing could get finalized in a bad way.