The game Ultimate Spider-Man 2, which was in development, was eventually canceled. However, we now have some updates on the canceled project from Ian Hosfield, who worked on both Ultimate Spider-Man and its sequel.

The main story was loosely based on Death of a Goblin. Green Goblin was set to be the second playable character, and his storyline would have involved trying to rescue Harry Osborn from custody—regardless of how unconventional his methods were. Like Venom in the first game, his narrative would have intertwined with Peter Parker’s.
The concept art also shows that Doctor Doom would have had a minor role in the game. See it below.

New York City would have been expanded to include Brooklyn and a much larger Queens. Daredevil and the Hand would have made minor appearances in the story. Kitty Pryde (Shadowcat), one of Peter’s love interests in the Ultimate comics, would have had a supporting role.
Wolverine would have returned after his minor appearance in the first game. See the concept art below.



The game was set to feature richer neighborhoods — with areas like Coney Island and Brooklyn being playable.
Ultimate Spider-Man 2, the canceled sequel to Ultimate Spider-Man and Spider-Man: Battle for New York, was set to be developed by Treyarch and published by Activision. It was ultimately canceled due to the mediocre sales of the previous game.
Following the cancellation, lead texture artist Chris Salazar said, “When [development] ends and the product ships, teams are often in a holding pattern as the powers-that-be determine the next course of action. We were working under an assumption — which, you know how that story goes.”
Salazar added, “I would guess that Activision never wanted to invest in promotion to the extent it would need. Hence, the soft sales on Ultimate Spider-Man.” Salazar added, “There’s a funny ‘chicken-and-egg’ situation, where the company is trying to forecast sales to determine how much to spend on promo, but if you don’t spend on promo, you don’t get sales, so… I got the impression that Activision didn’t have strong, long-term plans in those days.”
Source: YouTube