Risen 2: Dark Waters. Risen 1 was fantastic (on PC anyway, I heard it had a poor console port) and stands alongside Gothic II as Piranha Bytes' finest work, then Risen 2 comes along and it's complete shit. I wanted to like it so much, hell I played it one and a half times. But nah, it's just too damn broke, and what does work is painfully average. The only decent thing about the game is the pirate aesthetic, which was neat, and the foliage looked nice when it wasn't popping in and out. The melee combat had some potential when you put some skills into it, but the problem with that is it takes hours to get the combat to that point, which is inexcusable. And unlike Gothic 3, I don't think the fanbase cares enough to even try fixing it up. Unfortunately, from what I've seen so far, it looks like Risen 3: Titan Lords is going to be just as bad, or only mildly improved.
That's the first and most strong example that came to my mind anyway. Oh, Shadowman 2. The first Shadowman was a fucking wicked action adventure with a great protagonist and a brilliant setting with a strong atmosphere. From what I've seen of the sequel, it was toned right down and made somewhat cartoony with lame mechanic. Damn shame such an awesome theme was killed so early.
EDIT: Oh wait a minute, this was a joke. I thought those titles looked unfamiliar. Disregard, then.