Game with Harry f*cking Callahan? f*cking sold. Too bad it got scrubbed.. I remember hearing about this ages ago though.
To be honest, I don't think they make enough games from movies. But companies go for more popular modern movies because of their popularity and box office success. As Yokel said, there are some great games made from movies.. but games like this would be awesome, especially older movies. Because I don't think there's a soul out there that doesn't know about Clint Beastwood and his .44 .. I wouldn't care if it looked like a PS2 era game, I'd play the hell out of it.
Any word on what the technical issues were? Sounds more to me that they scratched the budget off instead and poured the money into a more successful title or Collective finally shut it's doors or got bought out. Though The Collective doesn't have a very impressive resume.. DaVinci Code, Star Wars Ep III and that stupid ass Mark Ecko game are the only games I can recall that they've made. Personally, I did like the DaVinci Code game, was neat. Those were the type of games I would rent when I played and finished most the AAA titles during that time.
Update: Just read up, Collective merged with Shiny Entertainment (makers of Earthworm Jim and all that) and then they merge with another company, Foundation 9 and founded Double Helix games.. which made acouple games so far, nothing noteworthy though.
Silent Hill: Homecoming
GI Joe: Rise of Cobra
Green Lantern game
Battleship game (probably the movie)
So I guess we can for sure keep Dirty Harry off our lists of any upcoming releases.. they seem adamant on sticking to newer and more modern movies and what not.