Its not dead. LoS is just another timeline. it's a reboot, much like Marvel's ultimates line.
I dont recall IGA's timeline being erased from existence, it's still there, and I still play them. however, the timeline was overly cluttered, and by 2035, Dracula was dead and gone forever. There was not too much room to grow, and IGA lost his touch after Aria of Sorrow. He started to move back on track with OoE, but too little too late, because by then the damage had been done. Then there was Judgement. And it bombed hard
so when they had all their branches pitch something, IGA presented
his alucard game for the 360, a prerendered video that looked of around Wii or PS2 quality,(hard to say, real grainy) and Cox/MS pitched
their Castlevania 1 remake, and Konami went with it, leaving IGA to try something with a small budget. (CV HD)
We'll just see where the new timeline goes, and how long it lasts. I doubt we've seen the last of the old one.