Contradicting an earlier report that seemed to confirm the rumored cancellation of Homeworld 2 (story), we received a reply from a Sierra PR representative to our inquiries about this that says in no uncertain terms that though they are involved in "negotiations with Relic regarding Homeworld 2," that rumors that the game has been cancelled are simply not true. Here is the statement:

These days anyone can email one of the less scrupulous rumor-oriented websites, say they're an insider and get a story posted about something going on at Sierra.

But that doesn't make it true. Unfortunately, when every other website runs a story about a rumor posted on another site, the public assumes that means the rumor has been "confirmed," even though it's really just the same story.

It's really impossible for us to get ahead of this particular rumor because the rumor itself is based on information that is not true.

We have not cancelled Homeworld 2.
We have not released Relic from their contract.
We have not made any sort of statement about Homeworld 2.
The negotiations with Relic regarding Homeworld 2 (which actually started long before E3) are completely divorced from the recent restructuring at Sierra.

If someone at Relic thinks the above things are true then they are mistaken. And there's no way we can predict when someone at Relic is going to contact one of you guys and say the things above.

Hopefully you can understand the situation we're in. It's hard to make a "statement" about things that aren't true, except to say that they're not true.