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A few things to say on this subject. Firstly the developer is almost always the last party to disclose a cancellation. Instead they prefer to let a game fade from public consciousness, and then a couple years later in a interview they will talk about the cancellation as if it were public knowledge. The longer any game is in development with no news the higher the probability that said game has been canceled. A hiatus in excess of a year is damn near confirmation.

Second its a poor logic that boils down a games potential for success to merely the size of an install base. The Wii has a remarkably different install base from any other current generation console, and for that matter any previous generation console. You could argue that the Wii owner is far more atypical then traditional. Games that would crash and burn on other consoles are mega hits on the Wii. While games that are hits on other consoles would find only deaf ears on the Wii. This game could just as easily be beloved as it could be ignored. In other words its not a given, and Square could with sound reasoning believe it would be the latter.

Thirdly explain to me how can anyone say the Wii user base is even remotely concerned with quality when it comes to Square, and their games. This is the install base that gobbled three quarters of a million units of Dragon Quest Swords in spite of the reviews that pegged it at best being average. The Metacritic score for the title is 66. I would postulate that the typical Wii owner is not very concerned with quality in the least. Nor are they particularly interested in this title. They are the casual install base for a reason. They could bite big time, or they could just ignore the title entirely.