Sony Europe has allegedly canceled the Sony Cambridge-helmed Heavenly Sword 2, while the first game's developer, Ninja Theory, has been said to be generally unhappy with the company. Kotaku reports an "inside UK source" said the game was killed after months in development because it was no longer commercially viable.

Meanwhile, Ninja Theory, which has offices in the same building as HS2 developer Sony Cambridge, is apparently moving out following "increasingly bitter" treatment by Sony. We've contacted both Ninja Theory and Sony for comment. If true, we'll never underestimate Sony Europe's game culling ability again.

Update: Sony informs it will not comment on the Heavenly Sword 2 rumor. Ninja Theory's official statement is after the break.

A representative for Ninja Theory writes:
"You'd have to ask Sony about HS2 - it's not something that we're involved in.

We are moving but it's completely amicable! We move mid July and have been planning it for the best part of a year, there's nothing nefarious about it. We are excited about the move - our new premises are considerably bigger and in an excellent location near the town centre."

This article was originally published on Joystiq.

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