Rumor: Final Fantasy Versus XIII Is Dead
Kotaku has heard from several sources that the game, as originally intended, is done for.
One source tells Kotaku that Final Fantasy Versus XIII was officially cancelled within the last few weeks. The decision impacted morale at Square Enix and staff were reportedly saddened by the move.
Square Enix, this source added, has also decided to let Final Fantasy Versus XIII die quietly on the vine and fade away, instead of officially announcing its cancellation. This would likely be due to the fact a public acknowledgement of a Versus' cancellation could impact things like Square Enix's stock prices.
Another source tells Kotaku that, a few months back, Final Fantasy Versus XIII's development and resources had actually been folded into another game, which is to be the next numeric Final Fantasy title, Final Fantasy XV. Whether this meant actual game assets and code or simply the movement of staff was unclear. This information was independently corroborated by yet another source, though it's important to note both had learned of the "folding" prior to the more recent news of its outright cancellation.
Aegon's Notes: Fuck you Kotaku...PLEASE NO!
According to Yoichi Wada's Twitter account, Versus XIII is not cancelled.
Yeah, this was all but a simple rumor: http://andriasang.com/con20p/ff_versusxiii_cancel/
Pretty much confirmed from what he said on Twitter just now. He laughed about the rumor and then went on to say they finished a regular meeting on the game, saw some towns presentation and whatnot.