In 2007, the term “next-generation” was well-demonstrated with the release of Assassin’s Creed. The title featured climbable environments and fantastic graphics that raised the bar for future games. Assassin’s Creed‘s success spawned three more titles, including a PSP title, Assassin’s Creed: Bloodlines. Bloodlines showed that Assassin’s Creed could work using last-generation-like hardware. But even more surprising was that an Assassin’s Creed title was being developed on an even older platform than PSP – the PlayStation 2.
Jonathan Jacques-Belletete, who has worked on the Assassin’s Creed series (and is currently working on Deus Ex: Human Revolution), revealed that a title was in development for PS2 (as well as Xbox):
It had a whole different story, with whole different environments and enemies and everything, and it was really cool.
The Assassin’s Creed PS2 title was in development by a smaller team at Ubisoft Montreal, during the developing of the original 2007 game. Jacques-Belletete called the PS2 title “awesome.” It’s a mystery why or when the game was canned.
[Source]