Eurogamer reports that in a press release, Crytek CEO Cevat Yerli said "We see Homefront as a really strong universe that has a lot of potential and that has been expertly created and marketed by THQ. We believe that bringing our level of quality, creativity and production values to the next Homefront title, creates an opportunity for both THQ and Crytek to deliver a truly blockbuster game."
This announcement goes against many rumors of a Timesplitters revival, which was anticipated by many to be their next project.
While it's good to hear that such a talented team is working on something, I have to say I'd much rather someone else was doing Homefront 2. Homefront was almost unique in how boring and mediocre it was, scoring a 70 on metacritic. This had little effect on sales though due to a huge marketing push by THQ at the time. To see Crytek UK work on this rather than a new Timesplitters is quite disappointing as the Timesplitters were incredibly fun to play multiplayer, as well as having a really funny sense of humor. To see them develop Homefront2, a pretty generic shooter, makes me just want more Timesplitters.
I hope that i'm wrong on this though, Homefront was an interesting concept that lacked execution. If anyone can turn that around and make a great game out of it, I'm sure Crytek UK can.