Here is the story published by destructoid.

http://www.destructoid.com/so-what-s-the-deal-with-shin-megami-tensei-x-fire-emblem-anyway--284562.phtml

At the end of the rumor it mentions IGN will announce the cancelation of the game today, which coincides with the VGA and speculation of Nintendo showing Paper Mario 5 at the event. So my crazy theory is that after the announcement at the VGAs Ign will run their story where they explain how the cancelation of SMTXFE turned into Paper Mario and spin it as positive because that's what the wii u needs more MARIO games.

A proper sequel to Thousand Year Door would make me forgive this. Of course, it's probably gonna be more bullshit.

Suffice to say that if this is true I would be extremely pissed off and disappointed. That's a game I've been looking forward to more than just about anything else; way more than Persona 5, even.

A rumored IGN article about a game cancellation?

Remember how there was an actual article about a game cancellation (Last Guardian) that was then denied in full by Sony?

I'm not saying this is bullshit. I wouldn't be surprised if it isn't, considering we haven't even seen alpha footage. Just, you know...wait and see.

BLUH. I really hope this isn't true.

That'd be a bummer mainly because I was curious as to what this would be. Not going to say I was excited about it yet because I knew literally nothing about the game.

As interesting and enticing as SMT X Fire Emblem sounds, we haven't seen a single thing from it, and I'd gladly sacrifice it for a sequel to Paper Mario:TTYD.

I might just sacrifice a proper Paper Mario sequel (emphasis on proper) for the prospect of seeing what sort of batshit insane thing would come out of a crossover between Fire Emblem and Shin Megami Tensei. Do you fight YHWH and slay him with Marth's Falchion? Is Fire Emblem just another version of Post-Apocalyptic Tokyo?

I forgot that this thing even existed, so there's that...

That's definitely a bummer but honestly its been so long since I had heard a peep about it that I forgot it even existed until this post.

Oh yeah, this was a thing at some point huh.

I dunno, a new Paper Mario could be cool I guess. After Sticker Star I'm kind of cautious about it, though.

Paper Mario is a better use of their time.

Atlus is kind of a mess when it comes to development. There's a reason half their catalogue is releasing remastered old games and the other half all use the same collective assets. After the 10th or so meeting about questionable genital shaped demons Nintendo might have just decided to cut the rope. It seemed like a fun idea when all Nintendo knew about SMT was Jack Frost.

Lame. Mario's lame. No Mario game can make up for the loss of this. But I also wouldn't be that surprised if it turned out to be true.

You can't cancel something that never existed (Fire Emblem). That game was vaporware from the start.

Considering there was absolutely no indication of what that game was even supposed to be, it's not the worst thing. Still could've been cool though.

A new Paper Mario on the level of TTYD sounds down right dope though.

that's a damn shame. fe x smt sounded like a really interesting crossover.

then again, the source is destructoid so i'll take it with a grain of salt.

That fucking sucks, I might have bought a Wii U for this.

I don't have a strong opinion either way. It was super unknown what SMT x Fire Emblem was even going to be like, so it would be hard to mourn that game. And they've been cocking up Paper Mario for a while now, between making one of them a bland platformer that was ridiculously easy, and making the one after that an RPG with one party member, basically no story or interesting areas/NPCs, and a kinda busted combat system.

I actually love being totally wrong with this one, the game exists and now its basically persona x shin megami x fire emblem, I hope it arrives in the west this year (probably not, xenoblade x is going to be the November game which still awesome)