Source: The Twitter feed of Colin Solal Cardo, staff writer for French gaming site Gamersyde.

http://www.gamespot.com/news/blogs/rumor-control/909119209/27013094/beyond-good-andamp-evil-2-development-on-hold.html

What we heard: Less than a month before the 2009 Electronic Entertainment Expo, leaked in-game footage of what appeared to be Ubisoft's Beyond Good & Evil 2 popped up on popular video-sharing Web site YouTube. The footage appeared to presage Ubisoft's blowout for the game, which was first announced as part of UbiDays in May 2008. However, such was not the case, as the game was conspicuously absent from Ubisoft's E3 presence.

It now appears as if Beyond Good & Evil 2 isn't just unready for primetime--it may not be happening at all. According to Gamersyde staff writer Colin Solal Cardo, Ubisoft confirmed to him that Beyond Good & Evil 2 has been placed on indefinite hold.

"I got confirmation at Cologne's Gamescom that Beyond Good & Evil 2 is on hold for now. No idea if it's def or temporary but it sucks," reads a post Cardo made to micro-blogging site Twitter.

Indeed, assuming the confirmation Cardo received is accurate, this wouldn't be the first time Ubisoft has distanced itself from its May 2008 announcement of Beyond Good & Evil 2. Speaking to IndustryGamers in July, Ubisoft North America executive director Laurent Detoc addressed the aforementioned leaked in-game footage, casting a substantial shade of doubt as to whether the game will see release.

"Whether or not [Beyond Good and Evil 2] comes out remains to be seen anyway, but we didn't want to abandon that IP because it has a cache and authenticity about it," Detoc said. He later continued, "Well, I didn't say there's definitely going to be another game. I said something had leaked, which means we've been working on some Beyond Good and Evil stuff, but whether there's going to be another game or not, that's something for the future."

The official story: Ubisoft had not returned requests for comment as of press time.

Bogus or not bogus?: Not bogus that Ubisoft is on the fence about reviving Beyond Good & Evil 2. Whether or not development has officially been suspended remains to be seen, however.

It's the Wii's fault!

Damn you, Rabbids Go Home!

But in all seriousness, that's probably it. Ancel and his team are doing the above game, and that's keeping them off of BG&E2 for now, and they just want to keep emphasis on Rabbids Go Home (which is looking awesome)

I've heard the original didn't sell well. I wonder if the cost of development for the 360 and PS3 is what has Ubisoft worried.