Heavenly Sword 2 Canned?

Citing a Kotaku report, CVG reports that development on Heavenly Sword 2 was canceled due to the game “no longer seen as commercially viable.” The original did not fare well at retail.

The game is said to have been canceled after six months of development at the Sony Cambridge Studios. Kotaku’s report also suggests that tension may have built up between Sony and Ninja Theory, with the latter moving to a new location out of the Sony Cambridge building.

Sony has responded with a resounding “no comment” on the matter.