The publishing partnership between London-based Interior Night and Sega has been scrapped.
"Interior Night is a really talented studio, headed up by Caroline Marchal who is amazing and really experienced but Sega decided not to continue with that project," he told the site.
"We have a lot of respect for the studio and I'm still really good friends with several people on the team."
Wertheim did not give specific reasons for the decision, but added "not every project is going to as well as I personally would like."
Interior Night is the new studio founded by Marchal, a former Quantic Dream lead. We broke the news of the studio's formation back in 2017 and spoke to her about her ambitions for narrative games.
Speaking to MCV, the Interior Night CEO assured that the studio was still on track with its first title.
"It's been a pleasure to work with Sega and to have their support during the early days of the studio," she said. "Ultimately, we have amicably parted ways for strategic reasons.
"However, development on the game - an innovative narrative experience, aimed at a mature audience - is proceeding well. We will announce our new partnership in due course."