You heard right. A lot of rumors around this one. 1up confirmed this in their podcast but didn't metion any names. Wellthe canidates are Fable 2, Too Human, or peter jackson's "halo project". Out of all of these it has to be peter jackson's halo project. Fable 2 no b/c the first one sold more than 3 million (also Lionhead, the game-dev, confirmed it is not being cancelled by M$). Too Human no b/c this game is not even 1st party just exclusive. And its been a year and still no devlopent seen around this halo project. Also its not Banjo 3 b/c rare confirmed it is not begin cancelled. Anyways I'm almost certain it isPeter jackson's Halo project. Yes, because of the fact its been in devlopment for a very long time and still we see no progress of this game what so ever.