C&V has confirmed that the story is false via a Capcom rep. Read more here.
Theres a rumor thats been swirling around which started at the Tokyo Game Show concerning Resident Evil 5. Industry insiders at the show apparently are attributing the absense of the title to the fact that its been switched over to an Xbox 360 exclusive title.
EuroGamer has the scoop:
Keep in mind this is all just speculation. This should be confirmed or denied at X06, which is due to happen in a week. It should also be noted that Inafune is not the producer on Resident Evil 5. For more, head over to EuroGamer.Industry chatter at the Tokyo event claimed Resident Evil's no-show is owing to Microsoft tying up a shock exclusivity deal for 360, with an announcement due at the US firm's X06 event in Barcelona next week.
Speaking exclusively to GamesIndustry.biz at TGS 2006, Xbox boss Sensui refused to pour cold water on the rumour when questioned, stating that it had already been announced for Xbox 360 and adding, somewhat enigmatically: "All I can say is we are very good friends with Mr Inafune [the game's producer]."