Square Enix reportedly somehow maybe trademarked Final Fantasy XV, so my guess is that instead of being called Versus XIII, they just renamed it XV. Although I'd prefer the rumor about XV being an entirely new title directed by Hiroyuki Ito to be the one that's true!!! xD

Either that, or this rumour is total junk.  Cause as others have pointed out, there is a Versus XIII DLC song for Theatrhythm, a game intended to be a fan service filled celebration of the series. This wouldn't make any sense to make that song available (reminding everyone that the game does exist) if S-E's goal was to quietly move away from the game...

Exactly

But they just did, or do you think FFXV will be on PS3 only?

Official site is still up so, this rumor is utter bull.

http://www.square-enix.co.jp/fabula/versus13/

Plans to include the song in Theatrhythm go back a ways, while the rumor suggests Versus was only officially cancelled a few weeks ago.  If the song was was released for Theatrythm, it's because they probably had finished working on it and plans for it were done at a time when Versus would not have been cancelled yet.  News of the Versus song being released as DLC for Theatrythm go back as far as April 2012, which means they must have been working on it before that, and all this is long before Versus's supposed cancellation.

So the fact that a Versus song was released as DLC for Theatrhytym isn't a very strong argument.

I for one tend to believe it.  It is just ridiculous that we haven't gotten anything for over a year and a half, when you know that franchises like Mass Effect, etc. come out with one game every two years or so!!  Development has dragged on for way too long and it's clearly time for them to just move on.

Well, the first footage of the game dates back to 2006 correct, but Nomura had stated that development had only fully started in 2010 so it's only been 2 years actually.  (Final Fantasy XIII was previously being developped for PS2, but since the PS3 had been announced SE decided they would carry it over to the new gen console. Thus, Final Fantasy XIII had actually been in development for, what, six years? So Versus XIII is well in the norm...

Final Fantasy games tend to take a long time to come out anyways and the official site is still up. If they would have cancelled development it would no longer be accessible.

I would take this rumor with a grain of salt. If anything I would be willing to bet they would just change the title to remove it from the XIII saga. I very much doubt that they would throw away 6 years (even if only in full development for 2) of effort. Only time will tell.

Also: http://thesilentchief.com/2012/07/20/final-fantasy-versus-xiii-canceled-not-so-fast/

We don't know until we know.

Needs repeating more, this guy's source is just as credible (if not more so) than a Kotaku rumour.  I'm hopeful that this is all a load of bull and we'll see something at TGS.

She is actually a very credible source. I would be willing to believe her over some random "source" in a second. Final Fantasy Versus XIII may be dead in name only if true, but I seriously doubt with every fiber in my being they canceled the entire project. They know they're sitting on a gold mine.

Actually, the game has entered full development stage in 2011, sometime between July and Sep.

http://www.vg247.com/2011/09/12/final-fantasy-versus-xiii-now-in-full-development-says-square/

http://www.novacrystallis.com/?p=1516