Now granted, he implied he was kidding, but plenty of people say things sincerely and then say they are kidding to avoid fallout, so
Yeah, but stop and think about it for a second.
For one, why would he even mention this in any way if it were true but he thought there may be fallout?
For another, Bulletstorm has been in development at least since it was announced in 2008 that EA was publishing a new People Can Fly title. That means it was probably in development in 2007, when PCF's last title came out.
So unless you think Epic is so clairvoyant that they could have planned and begun development of a new property to compete with Killzone 3 two years before Killzone 2 even came out, well...
Honestly, do people here even think things out, or does your hatred of any largeish company or corporation totally cloud your judgment and let you keep fooling yourself into believing things completely impossible to anything not omnipotent?