Chalk this up as pure rumor for now.

An inside UK source tells us that Heavenly Sword 2 has been canned by Sony Computer Entertainment of Europe. The game was axed after months in development because it is no longer seen as commercially viable, our source tells us.

The news came during an emergency meeting set up for the Sony Cambridge team which was working on the game.

On a side note, Ninja Theory, who have already said they weren't working on the sequel to their Playstation 3 exclusive, have grown increasingly bitter about their treatment at Sony's hands, our source tells us. I'm told that the development studio, which once had offices in the same building as Sony Cambridge, have started packing up to move to a new location.

I guess when they said they wanted to move away from Sony and get into multi-platform development they weren't kidding.

If true, this marks the third major project, counting Eight Days and Getaway 3, that has been canned by SCEE. Is the Europe arm of Sony in trouble? No clue, but we've asked for comment.

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