It looks like the rumors that Warhawk for the PS3 was in trouble might have been correct. Sam Kennedy at 1up is visiting Incognito to preview the latest developments on the follow-up to the Playstation title, and he indicates that Warhawk has been downsized from its original ambitions as a retail PS3 title. Supposedly the title is now slated to be a downloadable title with multi-player support only, a pretty drastic change from the original offering. If the title can bring a strong multi-player experience while maintaining the graphic quality at a reasonable download price, Sony might have a good reason to get on the Playstation Network, but it will still be pretty far from their original promises for the game.

Update: Sony has officially denied the rumors to Kotaku with a non-denial denial stating that they “have not made any decision with regards to distribution for Warhawk”