Rogue Squadron and Lair developer Factor 5 was working on a Sony exclusive multiplayer combat title called Animal Wars, according to a former staffer.
A piece of concept art from the mystery game, which sports a Sony copyright symbol, appeared on NeoGAF over the weekend.
Another poster, who used to work at the studio, then offered up a little information on the cancelled title.
Former staff at Lair developer Factor 5 have accused their old employer of pretending to be bankrupt.
Sony has decorated its freshly relaunched PlayStation Store with the Metal Gear Online beta client, the Broken Mirror expansion for Warhawk, and a Deadly Dragons pack for Lair, marking a return to its usual schedule of Thursday updates.
Sony has explained to Eurogamer that Lair will only be getting one downloadable content pack this Thursday.
Sony Europe has shed more light on the freshly announced Diabolical Dragons and Skyguard Update packs for Lair.
Both will be available on 17th April, with the former said to be paid for and the latter a title update - pricing yet to be determined.
Diabolical Dragons will add two fresh scaly beasts to fly around the sky on. The first of these is a Poison Dragon, which is apparently one of the biggest and baddest around. Its chunkiness makes it a bit slow, but it has very fiery breath to roast things with.
Sony has confirmed that the redesigned PlayStation Store will go live in Europe on 15th April, alongside firmware update version 2.30.
It also revealed the European Metal Gear Online beta test will be available on the Store from 17th April.
That date will also see releases of Warhawk expansion Broken Mirror, as well as Diabolical Dragons and Skyguard Upgrade packs for Lair.
Factor 5 boss Julian Eggebrecht has said he was surprised by the negative reaction to Lair from the hardcore audience.
Factor 5 has said it will mark its return to developing for Nintendo hardware with a fancy new Wii game.
Good old Lair for PS3 has been delayed by at least a couple of weeks according to retailers speaking to Eurogamer, with the game now listed as 23rd November by many.
Sony has finally decided that SingStar PS3 will be out in December, after making us fear the worst recently by saying the game was stuck in "release limbo".
Upon its American release, back in August, Sony's anticipated flappy dragon epic Lair received the sort of critical reception best described as a "drubbing". Much was said about the decision to use the Sixaxis motion sensor for control, with no option for traditional analogue stick control, and most of what was said was very bad indeed. Sony retaliated by sending out a "reviewers guide" to unimpressed journalists, explaining how to review the game, while Factor 5's Julian Eggebrecht rather patronisingly implored them to "open your mind and hands for something very different!"
Know this much: the slightly wonky control scheme is actually the least of Lair's problems.
It is, sadly, the sort of game that encapsulates all that is wrong with console transition periods, that development limbo where Next Gen and Last Gen overlap. It's a game full of ugly gameplay lurking behind pretty cutscenes, where visual showboating fails to mask gruesome design decisions. It's all mouth and no trousers, a clumsy and shallow experience that desperately tries to position itself at the start of a console's life as the Future Of Gaming. It is, ironically, much like Dragon's Lair - another slender gaming experience that relied on visual impact to distract from its hollow centre.
Factor 5 president Julian Eggebrecht has said that games' inability to include sexual content, satirical jokes and fantasy violence without degrees of censure are symptoms of a wider problem with ratings - and said that he didn't feel the US Entertainment Software Ratings Board (ESRB) took the medium seriously as an artform.
Semi-official Sony blog ThreeSpeech has opened up and stamped dates on key upcoming PS3 titles.
Of all PlayStation 3's forthcoming releases, the most interesting and significant is neither a game nor for sale. Home, Sony's more structured, sanitised and solid attempt at a Second Life world might seem innocuous enough but with the screenshots of its cinema space and the implied possibility of fully downloadable movies, there's the chance it might eventually outgrow even its host platform in significance.
Factor 5 has finished work on Lair, with the North American version currently in manufacturing ahead of its 14th August release.
Factor 5's Julian Eggebrecht has paid tribute to Sony and Nintendo for introducing motion sensor controls in their next generation consoles, arguing that it's "the next logical evolution" and critical to the success of the developer's next game, Lair.
Sony has cleared up some issues surrounding PlayStation 3 release dates on semi-official blog ThreeSpeech this afternoon, by pointing out that they're not all entirely correct.
Before you go and get your hopes up, the dates on the UK PlayStation site for Heavenly Sword and Lair are, in fact, wrong.
A pamphlet included in the US retail PlayStation 3 hardware bundle has shed some light on the release dates for a few of the next-gen system's upcoming exclusives.
TGS: The wyrm turns.
Of all the titles which we've heard about on the PS3 to date, Lair is perhaps one of the least hyped - and the most promising. Developed by Factor 5, they of the "lots of Star Wars space battle games" fame, the game was done something of a disservice by early trailers which showed improbable sky battles between hulking dragons and their armoured riders, looking nothing like gameplay footage and giving all the characters - dragon and human - the unpleasantly over-shiny visual style which makes everything look like it's covered in a film of slime (an effect now thankfully banished from the game). Factor 5's pedigree is good, and dragons are always great - but Lair slipped under the radar somewhat, because we just didn't know enough about it.