Munkeh - Every number I've seen for KZ2 has put it at, or above $40 million USD.
http://www.psxextreme.com/ps3-news/2503.html
http://www.digitalbattle.com/2006/11/28/killzone-ps3-info/
Essentially, KZ2 had, for some time, 120+ developers on the project. Also, the development time was considerably higher. Given the factors (time + developers), the minimum budget had to of been near the rumors of $40 million, if not more.
Back from the dead, I'm afraid.







