Kameo 2 cancelled?

Resources instead to be used on Project Natal projects.

CVG reports that the secret development of Kameo 2 has been cancelled, with Rare's development resources instead to be used on titles for Project Natal.

An unnamed source close to Microsoft revealed to CVG that the "company-wide restructure" that took place earlier this year, saw the cancellation of more than one "traditional" franchise sequel, although Kameo 2 is the only title to be named.

The source also indicated that disappointing sales of Kameo also contributed to the cancellation of the sequel.

Is Microsoft right to have cancelled Kameo 2? Do you want Rare, a developer with a heritage in creating high quality video games, to be working only on Natal? Share your thoughts in the comments section below.