Bad news for the people involved and console gamers but probably means we see witcher 2 sooner.
http://www.rpgwatch.com/forums/showthread.php?t=7105
GameBanshee claims The Witcher: Rise of the White Wolf has been canceled, according to an "inside industry source". The newsbit says CD Projekt Red started three simultaneous Witcher developments after the PC version shipped - Rise of the White Wolf, The Witcher 2 and a new game altogether:
The piece goes on to say resources have been concentrated behind The Witcher 2.
Meanwhile, Edge Online is running a similar story with the source stated as a translation at IncGamers from Polish site, Polygamia. From the IncGamers translation:
A lack of outright denial might be seen to add credence to the claims.
More information.
http://www.rpgwatch.com/forums/showthread.php?t=7105