According to CVG, Rare has halted work on development of a sequel to Kameo as part of a Microsoft cull

According to the site it is to make way for Natal development. Citing a source close to Microsoft, CVG has claimed that a recent restructure at the development studio also resulted in other sequels getting cancelled.

A statement from Microsoft earlier in the year hinted that a reshuffle could result in possible job losses. We've emailed Microsoft to see what it has to say, but in the meantime find out what Rare has to say about Natal.