The whereabouts of Ryse has been a hotly contested subject for some time now, with Phil Spencer confirming it’s still in existence at E3, before Cervat Yerli confirmed its development is going well at Gamescom 2012.

X360A has learned from a source close to Crytek that indeed, the rumours about Ryse being a next-generation Kinect title are indeed true, with our contact noting that it’s to make use of the improved version of Kinect that will ship with Microsoft's next-gen console. Yes, they said it would be a “launch title.”

Ryse, according to our source, has been “reworked” numerous times since its initial announcement and Crytek has apparently had a few “issues” with the game and Kinect along the way.

Our source also tells us that Kinect 2 “might not be what we quite expect” and that Microsoft is keen to move away from it being a separate device to it being more a part of the console itself.

Does that mean we can expect it to be integrated into the console? Our source wouldn’t comment, but hinted that could be the case. All you need to know though is that Ryse is alive and "potentially" a next-gen console launch title, according to our source.

We’ve reached out to Microsoft for comment, but we don’t expect anything other than the usual “we don’t comment on speculation or rumour” line.

[Update:] As expected, Microsoft have responded saying, "we don't comment on rumour or speculation."