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Rumor: Bungie Working On An MMO FPS Called Destiny?

New unsubstantiated rumors are flying about Bungie's new project with Activision.

Rumors have been swirling about Halo developer Bungie’s next project for some time, and one of the things we keep hearing is that it’s an MMO. A new rumor report from Kotaku lines up with this belief. According to their source, the project, which is being called “Destiny” (and alternately “Tiger") is an FPS MMO set in--what else--a sci-fi world. The source also says that the game will feature a brand new graphics engine, as well as advanced matchmaking tech. Unfortunately, other than citing a source in the know, Kotaku doesn’t back any of this up with specifics, so big grain of salt here.

However, Bungie has gone the extra mile to discredit another, and less game-related, part of the posting.  
   

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== TEASER ==According to Kotaku, the source was terminated along with roughly 30 other contractors because of performance-related problems and budget concerns. In an update on its blog, Bungie calls this claim flat-out false, as the studio “has never been asked to lay off any employees or contract employees by our publisher, Activision-Blizzard, for any reason.” Bungie further says it hasn't suffered any sort of layoffs or group firings, just to clarify in case the previous statement didn't convince you.   
 
Obviously, there's nothing confirmed about this rumor, but what do you think about the details? Does an FPS MMO sound good to you?