Codex Gamicus
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Sonic the Hedgehog 4 is an episodic platform game developed by Dimps and Sonic Team, and published by Sega. The game is a sequel to Sonic the Hedgehog 3 and was intended to return to the classic style of gameplay of the Sonic titles on the Genesis. Episode I was released in 2010, and Episode II was released in 2012. A third episode was in development, but was subsequently cancelled.

Ken Balough said, in reference to unused "To be continued" text found in the second episode:

The unused text was because there was going to be an episode 3. For reasons I can't discuss, Episode 3 never came to pass. But the idea back during Ep 1 was to make a full trilogy. [...] Yeah. The project will likely never see the light of day.
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