A team at DICE showed EA a prototype that was "declined", according to a Eurogamer Sweden translation of a Press 2 Play TV report.
"Patrick [Soderlund - EA driving and shooting game boss] acknowledges that Mirror's Edge didn't match up to their expectations regarding sales, and that has stopped the sequel that has been in development," declared the report, published originally in December.
"EA was shown a prototype, but declined with askance. The project has been stopped - involved parties at DICE are working on something else now. Patrick himself seems to have Mirror's Edge near his heart, but they are not in the business of charity."
Presumably the extra development is going into Battlefield 3 - EA's well publicised attempt at wrestling shooter supremacy from the Call of Duty series.
Patrick Soderlund confirmed last summer that "a small team" at DICE was 'on' a new Mirror's Edge game. Eurogamer pressed him on that point last November.
"Mirror's Edge is an IP that's close to my heart and EA's as well. It was a bold move from us. I'm proud we made it. It obviously didn't reach the commercial success we wanted, even though it wasn't bad at all," he said.
"I still think as a company we're going to talk about it when we're going to talk about it. What I can say is, we haven't buried it. We're absolutely continuing to support Mirror's Edge as an IP. When we're ready to talk about it, we'll talk about it."
EA Games boss Frank Gibeau went on record a few weeks later to say that the execution of Mirror's Edge "fell short". "There were issues with the learning curve, the difficulty, the narrative, and then there was no multiplayer either," he said.
Man, that's a bloody shame. But, given how nearly everywhere I went a few weeks after it's release, I should have expected that/