Following a weak box office for The Mortal Instruments: City of Bones, Constantin Film has decided to delay the already greenlit sequel The Mortal Instruments: City of Ashes. What’s more: Sources tell The Wrap that City of Ashes may be canceled all together.
The news is significant, as Sony was so confident in City of Bones’ box office potential in May that they decided to green-light the sequel ahead of the first film’s opening. Stars Lily Collins, Jamie Campbell-Bower, and director Harald Zwart were all set to return for the second movie. Production was scheduled to begin next week, and in July Sigourney Weaver had joined the cast as Imogen.
Since its August 21 opening, City of Bones has made $37 million worldwide. With a budget of $60 million and the added promotional costs (of which there were many as the cast embarked on a world tour), Sony and its production company Constantin ended up with a big loss on their hands.
The studio likely made the decision because of the aforementioned loss, and the fact that the sequel would likely do even worse at the box office since the first one didn’t take off. (Source)