There's a Homeworld 2 Cancellation Update on The Adrenaline Vault (thanks sunil) refuting the denial that was issued yesterday (story), and saying that though they have not received confirmation from Sierra on this, they have confirmed with developer Relic Entertainment that Sierra Studios has cancelled Homeworld 2. We have contacted Sierra for further information about this, but as they are based on the west coast (where it is still quite early), we have yet to receive a reply.