Google made an announcement in its official blog few hours ago, that it has decided to shut down the development of Google Wave. The source code will remain open source. This was first set to invitation based service where many google fans didnt find invitation to enjoy the wave experience.
But despite these wins, and numerous loyal fans, Wave has not seen the user adoption we would have liked.
This actually quoted by Urs Hölzle, senior vice president of Google Operations in his update about google wave blog post. At the initial stage google wave created so much expectation among users, but later many found difficult to understand what is google wave is all about. The number of users are also not upto the level as expected by google team. Hence they finally decided to shutdown their development of this product further.