This was posted a few days ago on Eurogamer, but Gamespots Rumor Control (as always) is slow to catch up. I seriously hope this isn't true, or Resident Evil is truly dead. These guys made the terrible fps games Legendary and Turning Point: Fall of Liberty.
http://www.eurogamer.net/articles/2011-12-16-legendary-the-box-dev-quiet-on-resident-evil-rumour
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