Bayonetta 2 cancelled?

It's been reported that Sega's third-person action-adventure shooter sequel, Bayonetta 2 has been cancelled.

The news comes from friend of ArabicGamers Svend Joscelyne over at Spong, with sources close to the project claiming the project had been cancelled.

Joscelyne also states that it's still unclear if the game had begun its development cycle, but there have been details of a new character that would suggest the game had at least been approved.

Sega has been going through some tough times recently, especially over the last month, and yesterday we heard that Europe and America Sega chief, Mike Hayes, will be leaving in the summer.  There have been many internal projects cancelled, and it's feared Bayonetta 2 would have been one of those.

Currently Sega aren't willing to comment on the game, but we'll let you know as soon as we do.