GameIndustry.biz. Instead, the development team is working on a new multiplatform intellectual property, potentially leaving the Sony owned Heavenly Sword franchise for another developer to play with.
Kristensen also mentions that they're thinking of producing a CGI movie to accompany their new project. Nothing's confirmed yet, as the two and a half year development cycle has only just started, but the potential of using the game engine to produce a movie is something they're definitely interested in. The full interview will be published on GameIndustry.biz later this month, where Kristensen will discuss their new project in further depth. In the meantime, check out the concept art for the game that was found on the new Ninja Theory website.