Earlier this week, an anonymous source told Gamasutra that Crysis game developer Crytek is working on a Kinect melee game for more than two years. Codename: Kingdoms as the game is called, was one of the important exclusive announcements of Microsoft on last year’s E3. Crytek is reportedly preparing to present Codename: Kingdoms at Microsoft’s E3 press conference early next month, present it as being a Kinect core game that is.

The source claimed that in the “next few weeks,” the Budapest studio, which has been working on the first-person melee Kinect game Codename: Kingdoms, will shrink from 80 workers to 30-35. Gamasutra writes that, the headcount reduction is believed to come after Codename: Kingdoms publisher Microsoft Game Studios made a “sudden decision” to have Crytek move the development of the game from Budapest to Crytek’s Frankfurt studio.

Codename Kingdoms: Kinect-ed?

Watch the trailer below, to get excited for this game (with or without Kinect support, the trailer looks to deliver on a quality game for sure):

Originally the game was announced last year, with no mention of Kinect support at all. Do you feel this could be the big hit game reveal that would convince a lot of gamers to get Kinected? Or do you feel this rumor is simply untrue, and if so: why?

Earlier today, we were able reveal a steering wheel accessory that is compatible with Forza Motorsport 4 and is expected to be available around E3 2011 as well.