LucasArts' lack of promo presence for Indiana Jones and the Staff of Kings at E3 2008 makes people wonder if the game is in trouble. DailyGame received confirmation from LucasArts that the new Indy video game is still "very deep into development".
Here's what DailyGame wrote:

During our E3 demo with LucasArts this morning (Clone Wars, Fracture and Force Unleashed), DailyGame was able to confirm that the Indiana Jones videogame first shown at E3 2006 is still "very much" in development.

Rumors have swirled that the Indiana Jones game for PS3 and Xbox 360 had been cancelled, either because it missed the window tying it to Kingdom of the Crystal Skull, or because recent layoffs had put development on hiatus.

That's very far from the truth, says LucasArts.

Apparently, the Indiana Jones PS3 and Xbox 360 game is "very deep into development," with a team "working very actively" to bring the game up to a form for public/media consumption. And, because the game shares an engine with Star Wars: The Force Unleashed, which ships this fall, such a display may not be as far off as you might think.

The progress the development team is making has apparently been paying off in strides, as one LucasArts representative told us that "the game looks great." With any luck, we'll be able to determine that for ourselves in the months ahead.

I believe it has been since the videogame's first announcement at E3 2006 that we have seen, or heard, anything new. And it doesn't look like the new Indy game will make an appearance at the San Diego Comic-Con 2008 either.