Jimmy Wales launched Wikia Search a little over a year ago. His idea was to build a user-generated search. It opened to not-so-great fanfare and the dismal economy didn't help things. Wales said that due to a reassessment of priorities, he's nixing Wikia Search.
Not all Wikia products are suffering a dark fate. Wikia Answers is proving to be quite popular, which holds with the current trend in the popularity of Answers sites.
Wales hopes to return to his Wikia Search project during future, more profitable times. He holds strong to his belief in openness and transparency in search.