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The rumors were that Exile was supposed to be a Gears of War title that would take advantage of the Kinect, but Cliff Bleszinski recently told GameSpot that the game has definitely been cancelled.

Bleszinski said, "let's just bury the hatchet now. Gears of War: Exile was an unannounced game that I can't give any details about that has since been cancelled."

Technically the game was never officially announced by Epic. A trademark for Gears of War: Exile was filed by Epic early last year , and that's how it was discovered.

[via GameSpot]