As mentioned in the headline this is a rumor so take it however you like.

According to the Rumor Reporter Warhawk, the upcoming game from Incog for the PS3, may be getting cancelled/ changed into a downloadable game. Their anonymous source for this story is supposedly someone that has worked on the title and said in the interview development has "stalled completely" and "infighting and a lack of direction" have led to a swelled budget and employees migrating elsewhere and layoffs.

Sony has apparently brought in a new director who was thinking of some significant changes for the game such as making it downloadable instead of a retail package. Sony has refrained from commenting other than saying they have not made any official announcements since last year and have nothing new to report.

Now, before everyone starts bemoaning the possible loss of this title, David Jaffe himself weighed in on the rumor and shot it down. This "source", going by one of his posts, is an ex-worker on the project who didn't take being let go very well. So all is well, Warhawk is still on the way.