It would seem that way. IGN are reporting that sources close to the development studio NST, the team who were supposed to be working on H.A.M.M.E.R., have had the game cancelled by Nintendo. The sources couldn’t give an exact reason as to why the game may have been canned, but some speculate it’s due to Nintendo reworking games for the casual market. Nintendo’s official press site still has the game listed as TBA, so either it’s still in development or Nintendo just haven’t updated their site. We had a go at the game as last years E3 and it wasn't too bad, stick with Vooks for all future news about the game..
Source: IGN