According to this unsourced rumor, a Bayonetta sequel that was never announced was cancelled. Which can mean anything from someone throwing away a piece of concept art to an entire project scrapped and internal schedule reworked.
My initial reaction is the expected, “Aww, now I won’t get to play Bayonetta 2!” But it occurs to me that I’m pretty sure I don’t want Bayonetta 2. Some games are fine as self-contained entities, with no further elaboration needed, and no real need for improvements. Remember when God of War, Devil May Cry, and Mortal Kombat were fresh? That’s the same thrill I got discovering Bayonetta that I eventually lost with those other games as they trundled down their path of sequels and remakes and reboots. If any game deserves to transcend the usual franchise treatment, it’s Bayonetta. What’s wrong with a really good one-off from time to time?
Of course, time was I would have said the same thing about Bioshock. Then along came Bioshock 2 and now I’m giddy with anticipation for Bioshock Infinite.