Rare has officially released this strange picture:
http://www.rare.co.uk/scribes/10jan03/x-arse.jpg
Specualtion, from GN, is that Rare has only Kameo in development, and there was an internal squabble about this matter. In the Scribes section of Rare's site, they are quoted as saying this:
"Pretty much everything else reverts to Rare. Any of these characters and franchises could return in the future along side original titles, such as Kameo, though as to which of them actually will, your guess is as good as mine. And I'm not just saying that- Your guess really is as good as mine."
Maybe Microsoft will look to take some of their money back....