Word is development of Heavenly Sword 2 has been canned as the title's "no longer seen as commercially viable" says a Kotaku report.
The game is said to have been axed after six months of development at the Sony Cambridge Studios.
We contacted Sony UK for comment, but was issued a firm "no comment".
The rumour, from Kotaku, also suggests that tensions have built up between Sony and Ninja Theory - the team responsible for the first game, who have began moving to a new location out of the Sony Cambridge building.
With Getaway PS3 and Eight Days having been put to sleep earlier this month, apparently "Due to the redistribution of resources and budget," this would be the third cancellation by SCEE of late.