We're not exactly sure what OXM's sources saw, but TimeSplitters 4 is no-go Crytek tells Eurogamer. It's unfortunate for fans, but not nonsensical. The TimeSplitters IP never had too much wait to it, sales-wise.
Crytek UK (formerly Free Radical) are currently hard at work on the sequel to Kaos Studios' Homefront. Best of luck with that. In the meantime, you can read Crytek's statement on the matter below. It's quite entertaining.
"For Timesplitters 4, with ever spiralling development costs, massive teams and endless crunch we decided on a more radical development strategy. In short, the experiment was to implement the infinite monkey theorem.
With cloning being a far too expensive option, we spent all of the development budget on buying monkeys on the black market. Those seven monkeys are now sat in a room with typewriters and lots of mirrors, and we fully expect TimeSplitters 4 to be finished soon. Rumours are that they haven't written any code but just tease the press from time to time. Those damn monkeys.
PS: anyone got any bananas?"