Here comes speculation from a previous employee of Sony about Killzone 2. Note his credentials cannot be validated, but he provides this evidence for the truth of his words:
"Just thought I'd post in response to people asking for proof. I'm just passing on information from one of my best friends, who works at Sony. If I had proof, you would have proof.
I agree that it sounds almost unbelievable, but I obviously believe it because I know that he wouldn't lie and works in the environment where this information is available.
For example when I worked there I played on heavenly sword, which was 18 months ago (very early code running on a dev kit, the enemies where either blue or pink), and i played on the PSP well before its release.
But as I said I'm just passing info on..."
This is what he claims to have heard:
"As some may know I used to work at Sony, and I was speaking to a friend still there last night, trying to get some details out of him over a few pints. Now he isn't working on Killzone 2 but he's been told and shown a few things. Here's what he said;
1. He seen a gameplay video. Graphically he said it was better than the E3 trailer, but personally I think he was just a bit over exited because it looked amazing.
2. NPC's react realistically to where they are shot. The example he said is that a Helghast was hit in the hand and it shook its hand as if in pain, and also if shot in the leg blood seeps out of the exact area shot.
3. For multiplayer each server is like a world, with villages and towns, and your battling for control. If Helghast controlled it looks run down, if ISA controlled it looks nice, with residents living there.
He said the game is very far along too."
This previous employee also claims that Lair's GFX are spectacular but the gameplay is lacking.