I have received information from two sources, which suggest TimeSplitters 4 has been put on hold. Not only this but all of the projects from Free Radical Design have been stalled. According to one of the sources, Crytek has bought Free Radical Design specifically to help them move to console development with their own games. This can be backed by what Cevat Yerli said in an interview, referring to Free Radical Design,

I was really impressed with their development talent, and it was effectively a 100 per cent console studio, whereas Crytek in Frankfurt is clearly the exact opposite.

When I went up there the first time it was just console, console, console, and no PC. There were more consoles than I’ve ever seen. So with us developing the CryEngine 3, we saw it as a perfect fit for our future plans.

What I expect is that the team will kick ass on consoles.

It is likely Crytek UK will be supporting the console development of Crysis 2. However, this doesn’t mean TimeSplitters 4 has vanished from existence. We should hopefully see it sometime in the future. Referring to the excitement around TimeSplitters 4 Cevat Yerli had said,

I am very happy about that excitement.

It would be very odd to suddenly discover TimeSplitters 4 has been canceled.

It is also known Crytek UK will help support CryEngine 3 for consoles. Once again by Cevat Yerli,

We are going to channel our engine business there. We are going to export our engine business sales there. We are going to build tremendous value in that area in the UK.

For us Crytek UK is not just a development studio, it will support and licence our engine business. We have future announcements ahead as well, and you will see how much value we are adding to the UK studio.