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Fans of the 2009 third-person action game Bayonetta may never see a sequel. A new report suggests that Sega has scuttled Bayonetta 2 as part of their wider cost-cutting initiative.

SPOnG says that news of the cancellation came from an anonymous source. It's not clear how far along development of the game was. However, the team at Platinum Games had already conceived of a new character with a US military background. The project, then, was at least in a pre-production phase.

At the end of March, Sega revealed that they were expecting "extraordinary losses" due to economic conditions in the United States and Europe. They announced that they would be laying off employees in both territories and also cancelling several games. They plan to narrow their releases down to more established franchises like Sonic, Aliens, Total War and Football Manager.

In the first Bayonetta, players took on the role of a witch with martial arts and an arsenal of weapons. After pummeling foes with long combo moves, Bayonetta could unleash elaborate finishing moves called Torture Attacks. A number of unlockable extras are seeded throughout the game to encourage multiple play-throughs of each level.

The supernatural storyline of Bayonetta was tough to follow but the twitch-based beat 'em up combat was a fun, challenging diversion. On balance, I liked it a lot. It's a shame that Platinum Games might not get a chance to revisit the series.

Platinum's not hurting for work, though. They're currently working on an online brawler for Sega entitled Anarchy Reigns. They've also taken over development duties on Metal Gear Rising: Revengeance, formerly known as Metal Gear Solid: Rising. Anarchy will be out this summer, while Revengeance is undated.

Sega, for their part, has not commented on today's report. To be fair, though, they never announced Bayonetta 2 in the first place.

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