In this industry you can seemingly do what ever you want.
This is the case in every industry - more or less to the extent that it is in this case, anyway. Business is all about making money, you know.
They released a half developed game and now the next generation of consoles is coming so they scrap the project to go where the money will be. It's that simple.
Speaking of which...
Of course any business in this field*, hoping to survive at all, will follow the console generations. This is
where the money is. And
that is what business is about.
Eesh.
If you don't like the way a particular business, er...
does business,
don't give them your money. It is that simple.
* Except for those dedicated to PC game creation, which yes, is still feasible for a few, but ony in specific ways, and these ways are
not at all Oblivion/Skyrim/FO3/FO:NV ways, let's just say.