It could have been that. But people wanted to know it for sure. Chris Seavor answered that not only did they start working on a sequel with that title, they also had a full storyline ready to be depicted on the screen and many new movie references in mind: “We actually started on a direct sequel which was going to be called ‘Conker’s Other Bad Day‘ which dealt with Conker’s somewhat unsuccessful tenure as King. He spends all the treasury money on beer, parties and hookers. Thrown into prison, Conker is faced with the prospect of execution and the game starts with his escape, ball and chain attached, from the Castles highest tower.” Chris also revealed that Berri would have made an appearance, but a bitter sweet one. She was to be a form of "Terminator" (who is referred to as the Berrinator) and was to hunt down Conker.
On September 16, 2008 it was announced that Microsoft cancelled the Conker game Rare was working on, and in a later interview, some of Rare's staff members hinted at what might have been.
According to Chris Seavor, as he revealed in an interview in September 2012, "there was also a massive space poo: The Cthulpoo, the main baddie. Lots of other stuff happened, with some new characters appeared and old favourites returned. We got to find out about Gregg’s childhood and why he hated cats, there were tons and tons of parodies of the more contemporary movies, and an evil doppleganger version of Conker that you got to play for a while. And (Birdy) died. That kinda stuff… As with the original, it ended on a bittersweet note."
There's always a possibility that Conker's Other Bad Day can be made and released.