Mercenaries 2 on the way?

The rumour mill is working overtime as far as Activision is concerned, with news emerging that the publisher is bringing out a new sequel for one of its hit franchises but has cancelled two more.

According to word from the US, LucasArts is currently hard at work on a follow-up to Mercenaries, the hit PS2 and Xbox shooter which was released in February of last year.

Apparently Mercenaries 2 is in development for the Xbox 360 and PS3, and should be out at the end of this year. Activision declined to comment when we contacted them about the rumour, but seeing as the first game sold an awful lot of copies it seems likely this one could be true.

And if the sequel is anything like as enjoyable as the original game, that's good news as far as we're concerned.

Also emerging from the States is the rumour that sequels to Western shooter Gun and GTA-style action game True Crime: New York City have been cancelled. Apparently their predecessors didn't perform quite as well as Activision hoped, and they've decided not to throw any more money at either franchise.

An Activision spokesperson also refused to confirm or deny this one, too, telling us: "Activision does not comment on industry speculation."

Guess we'll just have to wait and see...