Kameo 2 killed off?

Source: UK-based gaming site CVG.

What we heard: Microsoft is expected to launch its camera-based motion-sensing device currently known as Project Natal in 2010. As software support will factor heavily into the success of the Xbox 360 add-on, the publisher has already signaled its intent to have its internal studios heavily back Project Natal. Last month, Peter Molyneux confirmed that Fable III will make use of the device, and Microsoft has indicated through a host of job listings that it is building out an all-new studio dedicated to Project Natal development.

Of course, Banjo-Kazooie developer Rare, which Microsoft purchased in 2002, is also at work on Project Natal software. However, according to CVG, the studio's Natal development has apparently come at the expense of a sequel to the Xbox 360 launch title Kameo: Elements of Power. Citing unnamed sources, the site reports that Microsoft also ceased Kameo 2 development due to disappointing sales of the critically praised original.

CVG's sources went on to note that Kameo 2 was taken out of the development pipeline around the time that the publisher restructured Rare earlier this year. At that time, Microsoft Game Studios reps declined to comment on whether the restructuring effort would affect any in-development projects. However, the publisher did indicate that it would be "implementing a new approach to current projects in the pipeline."

The official story: Microsoft had not responded to a request for comment as of press time.

Bogus or not bogus?: Looking not bogus. According to the NPD Group, the original Kameo has sold just over 300,000 units in the US since its November 2005 launch despite being offered at a lower price point than normal 360 titles. That figure is markedly lower than even Rare's other launch title, Perfect Dark Zero, which has moved some 655,000 units over the same period of time, according to NPD.