According to a report from CVG, Kameo 2 was in development at Rare, but was subsequently canned because of the company’s restructure and switch to development of Project Natal.
Bad sales of the original game, which was a launch title for the 360 back in 2005, is known to be a factor of why the sequel was canned, apparently.
The report also suggests there was another known series getting a new edition at Rare alongside Kameo 2, but that was also canned.
Could that have been Perfect Dark Zero 2? Or even Killer Instinct?
We’ll leave an email with Rare anyways to see what they say.