Here is a teaser I wrote for an incomplete article:
CAUSE OF DEATH: Have we finally determined the truth? Did TTi abort Dangerous Journeys: Necropolis in response to TSR's agressive legal tactics? Should TG-16 fans blame TSR for the premature death of a promising RPG set in a mystical Egyptian setting? Jump to the discussion below to learn more details from Gary Gygax himself...
http://www.archives.tg-16.com/Dengeki_PC_Engine_1993_03.htm#gygax_was_betrayed_by_NECWell, last year I started writing this article...(it is not finished!!!!) but basically Gygax claims that TSR's corporate tactics squashed Gygax's new business venture (Dangerous Journeys)...litigation and legal battles cost too much and take too long, so Gygax sold ALL his DJ IP to TSR, who just wanted to remove DJ from market.
Basically, the Dangerous Journeys TG-CD project was a victim of this larger corporate battle.
THE QUOTED EXCERPT (block quote, powder blue box) is from a much longer Gygax interview where he discusses lots of interesting things, but only briefly touched on DJ and video games. The interview is easy to find online.
BOTTOM LINE: We really don't know how far into development
Dangerous Journeys: Necropolis was until it was cancelled. I don't think it was far, despite the fact that the planned release date of DJ (April 1993) preceded/coincided with TSR lawsuits.
I have a later draft of this article where I tried to establish a basic timeline, showing how TSR's legal challenges disrupted all of Gygax's business ventures...which is why TTi and JVC backed off.
TRIVIA: magazines initially listed the game as "Dangerous Dimensions", which NEC/JVC chose from a list Gygax suggested...but "DD" was too similar to "D&D"...
WE DON'T KNOW HOW MUCH $$$$ Gary accepted for the settlement with TSR...