The Witcher: Rise of the White Wolf - Canceled, Witcher 2 Starts Production?

GameBanshee claims The Witcher: Rise of the White Wolf has been canceled, according to an "inside industry source".  The newsbit says CD Projekt Red started three simultaneous Witcher developments after the PC version shipped - Rise of the White Wolf, The Witcher 2 and a new game altogether:

As the financial crisis hit, the studio was affected as well, finding itself incapable of managing all three projects and forced to lay off a significant portion of its staff. The third Witcher IP project was cancelled, and its entire crew was let go or left of their own volition. A second round of layoffs followed as The Witcher: Rise of the White Wolf was cancelled, including around two dozen people losing their jobs yesterday.

The piece goes on to say resources have been concentrated behind The Witcher 2.

Meanwhile, Edge Online is running a similar story with the source stated as a translation at IncGamers from Polish site, Polygamia.  From the IncGamers translation:

Roughly translated, the post reads: "We're sorry to give you this information. Our sources report that the console edition of The Witcher has been cancelled and the game will not see the light of day." The site reiterates that right now this is only rumour and that readers should wait for an official line before taking it too seriously.

A little later, polygamia posted an update from developer CD Projekt Red, which (again, very roughly translated) appears to say that the company is not commenting right now, but will make an official statement soon.

A lack of outright denial might be seen to add credence to the claims.