The first Penny Arcade Expo East kicks off today in Boston with high-profile titles such as Dead Space 2 and Red Dead Redemption making appearances, but unfortunately, the first news out of PAX East isn’t good, as Penny Arcade co-creator Mike Krahulik told Joystiq that there will be no part three for Penny Arcade Adventures.

The episodic RPG series was originally planned as a quadrilogy but after release on XBLA, PSN and the PC sales have not been high enough to warrant continuation. Part one was released in May 2008. When part two followed that October, the title only garnered one-third as many downloads.

Developer HotHead, responsible for both entries into the series currently has a publishing deal with EA to release their downloadable title DeathSpank. While the company could have created a third Penny Arcade Episode, the other half of the Penny Arcade duo Jerry Holkins said, “…but I think Episode 3 would’ve suffered. I mean, I know it would have suffered.”

Fans of the bizarre plot line need not fret, Holkins added, “we’re going to finish that story but it’s going to be on our website.”