Many of the people on this site are involved in technology (software and/or hardware) product development. If they work for a company that spends $10M in development salaries & related costs to build a product, and then decides not to release that product, the company certainly deducts those development costs from its revenues when it files its taxes.

This is true even if some third party had made an offer to acquire the product - there are many valid reasons why the first company may choose not to sell it.