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http://ps2.ign.com/articles/364/364644p1.html
Hope it's not true
I was really looking forward to it, but after seeing it running on recent PS2 mag coverdiscs, and reading the previews/reviews, I don't think it would have been that entertaining.
It sounds like a modern Dragon's Lair, with you needing to perform the right actions at the right times, or failing and starting again.
As for the reasoning... sounds like MS have stepped in with the cash again. Still, if they want exclusive rights to the 'average' games, that's up to them.
http://ps2.ign.com/articles/364/364644p1.html
Hope it's not true