Everyone, keep these in mind. We don't know anything yet about this project. After the bad assumptions I made of Lords of Shadow 2 beforehand, I am very wary of anything from Konami. We need to wait until solid details are revealed and that will be a while.
Would Konami allow MS another shot at the title? Well, MercurySteam clearly is a talented group. I know that from the first game and Mirror of Fate. They did make the best selling 3D Castlevania title, with amazing production values. Lords of Shadow 2's failure was probably not due to the team itself. If they were given the tools and freedom they needed, I'm sure that they would make some amazing work, even if it isn't Castlevania. I hope Konami would see that through, if that's the case here.