Quality concerns appear to have sunk Valhalla's Wii U shooter in North America for now. UPDATED JULY 10
If Devil's Third is to release in North America, it will not be published by Nintendo of America.
According to a video recently posted by Unseen64 (embedded below), NOA is passing on the game due to severe concerns about the game's quality. One anonymous European previewer claimed the game "looks like a game from two generations ago", while another was quoted as saying the game's aiming system is broken, and has extremely poor production values.
The game is not officially cancelled in North America, but its release is in limbo while Valhalla seeks a new publisher. Given the nature of Nintendo's concerns, whatever publisher might pick the game up is taking a big risk. There is no word about whether Valhalla may self-publish the game on the eShop, as statements from Valhalla studio head Tomonobu Itagaki have stated that he will release the game in North America no matter what.
UPDATE July 10: A report from Siliconera confirms the game has been dropped by NoA, but will release thanks to a publisher "Siliconera readers are quite familiar with".
UPDATE 12:25pm EDT July 10: A line further up the Siliconera story seems to confirm the identity of the mystery publisher: "this won’t be the last story about Tomonobu Itagaki’s game in North America" (emphasis added).