The lights are on
Update: Square Enix CEO Yoichi Wada took to Twitter to dispel the rumor, saying the long-developed game is still in production. He noted he had just gotten out of a meeting about Versus where he saw a fresh presentation of a city location from the game.
Original Story: Announced alongside Final Fantasy XIII over six years ago, Square Enix's Final Fantasy Versus XIII has been mysterious from the start. Updates on the project have been rare, and opportunities to see the game in action even rarer. If recent a rumor is to be believed, whatever was going on with Versus XIII has resulted in its cancellation.
According to anonymous sources speaking to Kotaku, the troubled development of the game has come to an end. Allegedly, the project as it was originally conceived is dead, though the effort that has already been put into the game may be integrated into another upcoming Final Fantasy.
The sources also claim that Square Enix is not planning to make a formal announcement regarding the cancellation, opting instead to simply stop talking about the game and letting it fade out of people's minds. In a statement to Kotaku, Square Enix said: "We have no information on the status of Final Fantasy Versus XIII, but will be sure to update you as it becomes available." Looks like we'll be hearing a lot of variations on that sentence in the months to come.
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Come On!!! They announced this game in 06! I want it already!