The guys at Gamedaily had the opportunity to watch a brand new trailer of the ubber hyped Killzone 2 for the Playstation 3 which featured real In-Game footage. Unfortunately, it seems that it failed to impress.

Gamedaily Reports:

"Before we exited, we were teased with a brand new Killzone video, which looked nowhere near the level of the CG video shown at E32005, but it did look quite good, probably visually on par with some of what we've seen in the Metal Gear Solid 4 trailers. Harrison said that more will be shown at this year's E3."

However Sony's Phil Harrison explained that it was only a tech demonstration of PlayStation 3 tools used to make games.
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Gamespot reports: "Given the tech focused nature of the trailer there were some showy moments revolving around blowing out individual windows in a warehouse area as well as another sequence that showed shafts of light coming in through holes being blown in a structure. Light also figured prominently in a sequence that showed the light on a soldier's rifle illuminating a dimly lit area. An extended sequence also focused on assorted soldiers getting plugged full of bullets in different venues, which yielded the expecting twitching and flailing. The humanoid and vehicle focused action was livened up at the end of the video when wicked mechanical sentinel-like creatures unfurled their appendages and menaced the camera."
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1up reports:

"Explaining that this was a work-in-progress and it wouldn't be a part of his GDC Keynote the following morning, Sony Computer Entertainment Worldwide Studios President Phil Harrison wanted a way to point at the power that the PlayStation 3 could unlock. At the conclusion of a presentation that unveiled 'Home' and the irrefutably smart LittleBigPlanet, Sony showed 1Up Killzone.

It wasn't called 'Killzone 2,' it was just called 'Killzone' and the video footage appeared to be artifacted somehow. It wasn't the clear, crisp HD footage Harrison's presentation had been populated with -- it was almost like an afterthought. It didn't look as good as the fake-footage seen at E3 2005, but it didn't look bad, either. It was just a half-hearted show of particle effects, bullets ripping through warehouses, tearing apart kitchens and showcasing the rag doll physics in the Killzone engine. If the footage ever surfaces, it'll likely be treated as an 'engine' demonstration, but the first-person perspective, gunplay and action clearly show gameplay in some state."
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Rumor taken from a exert from next month's EGM magazine:

"We walked into Ps3 and cell development knowing what every other developer knew. Nothing! You can bet your ass we're walking out with the most technologically advanced console game on the market!

Q - When will we be able to finally play it? "

A - You'll be seeing it, rather than playing it, in early march. We've put together a surprise demo for the Psn and will be available soon.
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The hype train is now rolling and it's getting faster and faster.
The Keynote of Phil Harrisons is not a secret anymore if a forum post over at Neoseeker is to be believed. Firmware update available on the 8th for North America/Japan and Asia. European PS3's will be preloaded with this latest update.
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Rumor Reporter gives an update about rumors concerning Killzone, the none-appearance at GDC, and the alleged demo.

The article should be taken with a grin of salt, as the sources are a bit thin to say the least, so read with that in mind.

From the article : "I found out a little bit more than what I'm able to say, but posting anything more may not be needed. From what I know, Killzone 2 could very well be the best looking console game, ever. Period. This was revealed to my by a Genji 2 producer back in September, citing the game's visuals as even better than the original trailer."
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Updated US Release Chart from IGN. Tekken 5:DR date confirmed and College Hoops 2K7 delayed.
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"No, Killzone won't be GDC at all," stated SCEA Manager, Ryan Bowling, in a conversation with IGN held earlier this afternoon. "The time for that game is coming and we'll have new information about it in the future, but not at GDC."
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The highly-anticipated PlayStation 3 sequel to Guerilla Game's Killzone is to be officially unveiled at next month's Game Developer's Confrence. Well placed US sources have revealed to us that the flagship Sony shooter will be shown in full glory at the San Francisco event, perhaps even in the form of a playable demo. As well as its high price point, the PS3 (like most consoles) has faced criticism for a lack of really high profile, compelling games which make it a "must buy" and the big ... » Read More

Is Sony going to use shooter Killzone PS3 to steal some of Microsoft's Halo 3 multiplayer beta thunder this spring? Well, that's what a rumor on 1UP.com is suggesting, saying that a demo of the PS3 sequel that was last in the public eye at E3 2005 will actually appear before the Halo 3 beta begins. It's additionally rumored that Killzone PS3 is well into development - so far in fact that the online section of the game has existed in playable form for nearly a year. Coupled with the demo ... » Read More

There is a hot new rumor today that Sony and Guerilla Games have secretly completed a playable demo version of Killzone 2..... and Sony plan to release the demo before Microsoft release their Halo 3 Beta!

Quoted from Luke Smith's Blog at 1up:

"Rumors pointed at the game's intended resurgence at their pre-launch Gamers' Day event last year. Ultimately, if the rumors are to be believed, Sony shelved showing Killzone 2 in favor of spotlighting Insomniac's new shooter franchise (and it will be a franchise) Resistance. The same rumors have pointed to Killzone 2 being much further along than previously expected -- with the apex of the rumor arc concluding that the game has been playable online for almost a year."
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In a recent interview with SCEA's Peter Dille, Killzone 2 is mentioned briefly as one of Sony's upcoming titles to release in the second half of 2007.

"I think we have a good first half of the year. Games like Lair that people are really excited about. MLB is coming out and is looking great and is the best-selling sports game from a first-party studio. Motorstorm. Heavenly Sword. And don't forget you have games like Killzone in the back half of the year. We're not really saying that there is one game that consumers have to wait for. I think that the content is there now and the content is coming. It's going to be a steady stream of really great PlayStation 3 content," stated Dille.
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It seems Killzone PS3 is likely to get episodic content after the game's director has stated that "the Killzone that will be in stores is only the beginning." While this isn't an official confirmation that the game will be broken up into chapters, it adds some substance to the speculation that Sony could use Killzone on PS3 to promote the idea of downloading episodic content from the online PlayStation ... » Read More

Today, the long silence on the game was broken by the Dutch newspaper de Volksrant. In an article titled, "A video game more expensive than the most expensive film," the daily highlights the next-gen Killzone and its developer, Amsterdam-based and Sony-owned Guerilla Games. The piece's name comes from the fact that the game is costing more to develop than the priciest film in Dutch history, director Paul Verhoeven's World War II thriller Black Book (Zwartboek).

While Black Book cost more than 16 million euros (approximately $21 million), Guerilla won't mention specific numbers for Killzone's budget. "Our budget tops [the film]," said Killzone director Arjan Brussee. "We're working on the biggest multimedia project in Dutch history."

Killzone's high cost is due to the labor-intensive development nature of graphically demanding next-generation games. "Work that used to take someone a week now takes him a month," said Brussee. Currently, some 120 developers are working on Killzone--roughly three times the staff of the first Killzone. Interestingly, half of dev tem comes from outside the Netherlands, up from one third on the PlayStation 2 original.

Another factor driving up the game's price tag is localization, as the new Killzone will be fully translated in 20 different languages. This effort will pay off in the long run, Brussee thinks. "You sell 30 to 40 percent more [units] with a translated version," he said.
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Guerilla Games has just revealed to German site ownage.nl that 2 additional levels will be downloadable via the Playstation Store. These levels, which will be payeable, will form a principal history in margin to that of Killzone 2, in a similar way to that of Half-Life which contains several extensions.
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Killzone on PS3 will not be shown again "until it's going to exceed people's expectations," Phil Harrison, executive vice president for Sony Europe, has revealed. "It will be next year before we show it again," Harrison states, although he claims that "some elements already exceed the trailer." Sony hasn't given Killzone on PS3 an airing since the infamously eye-boggling trailer that was released in 2005 at the E3 games exhibition in Los Angeles, wowing audiences with its retina-stunning ... » Read More

Appearently, Guerilla games is now accepting new recruits for the development of Killzone for PS3, which was blatently absent at the last E3. Browse through the site to learn a little more regarding the development.
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