It is actually a good move, the A340 is such a non-competitor to the B777, I'm surprise Airbus went on with it for as long as it did, and no doubt the actual performances of A340s vs. B777s do not give any airlines any reason to buy A340s. In fact, Airbus has not taken in an order for A340s in two years all the while B777s have kept-on racking up orders.
Airbus should concentrate on the wildly successful A320neo and make sure A350s don't suffer any more delays.