Rare was once developing a sequel to Xbox 360 launch title Kameo but they're not anymore. If you're the type who blames Microsoft for everything, you'll be pleased to learn that killing the project was their idea.

CVG, citing "a source close to the platform holder," states that Microsoft cancelled Kameo 2 and another franchise sequel in development at Rare. The move was made so that Rare could devote more of its resource toward creating software for Xbox 360 motion-sensing technology Natal. The poor sales of Kameo didn't help matters.

Rare, a Microsoft-owned company, now has at least one Natal game in development. The studio is overseen by Peter Molyneux, an obvious Natal fan who now serves as Microsoft Game Studios' Creative Director in Europe.

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