Coming from someone who isn't even a horror fan in the least, this is terrible news. Jason Voorhees is a character I grew up with, and like Santa Claus, Superman and other immortal icons of fiction I thought he'd just be a mainstay until storytelling itself ceased to exist. Of course, it's 100% unlikely that the property is done for good. And no matter how long the wait, a franchise like this won't have to be rebooted again. It can just continue as if nothing happened. Like how we choose to forget our least favorite sequels (Jason Takes Manhattan? Jason Goes to Hell?) and remain fans of the franchise as a whole.
There's no reason given for why the sequel fell through, and I can't believe that it's a matter of the script not being good enough. Or fresh enough. With full knowledge that devout Jason fans will be annoyed with my suggestion, I think the franchise should continue with more films putting the slasher in odd situations. I actually like Jason Takes Manhattan in the five minutes or so actually set in the Big Apple, and Jason X was equally a guilty pleasure. Where else could he wind up besides NYC and outer space? Jason Goes to Jail? Jason Does Dallas? James Cameron Present's Jason Under the Sea? What would you do with the character and franchise?