A mod on gaf that usually has an ear pretty low to the ground when it comes to Final Fantasy or Square Enix says she was told quite recently that development is full steam ahead:

http://www.neogaf.com/forum/showpost.php?p=40064380&postcount=27

I personally hope it's not canceled. Everything we've heard about this game sounds awesome. Giant (seamless?) world + map, battles in and out of cities, flashy action-based combat. Then there was that gameplay video.

It looked like they had laid the groundwork for the best JRPG of all time, provided they didn't really screw up the story or pacing.  

I am fine with the decision if FFvs13 becomes FF15 and eventually becomes a next gen title. Maybe Square gets their act together next gen. Agnis Philosophy+FFvs13+Skyrim like scale sounds great. They could keep the linear storyline with a few variations here and there and let it happen in vast diverse landscapes with huge cities and no battle screen.

^ That's another thing. The groundwork laid for Versus would provide a great foundation for any FF game. It'd be pointless to cancel it if they were just going to start all over again for a FFXV. They're not gonna throw all that away.

I guarantee you Versus will live on, even if the story or something is changed and it becomes a FFXV for ps4 with a few fundamental changes.

SO they waisted their time... when they could have been developing KH3

If this really is true, the damage to the company will not be something it cane rebound from. Seriously, this was the last title that was holding the faithful together. With it gone...this company might as well close it's doors.

I disagree, there's still quite a bit of people who really blindly liked FInal Fantasy XIII and completely ignored the game's flaws.  Hell Final Fantasy XIII has the worst ending I've ever seen in a game, yet my friend had to hold back her tears.... I had to hold back myself from throwing my disc out the window.

:(

I keep telling everyone this. SE hates money

If this information is true then I will never support SE again, I don't wanna see another final fantasy 13 sequal. I hope it sells less than a million so SE can finally get there act together and start doing what there fans want them to do!

What you are saying it totally subjective (I'm sorry but it's the same old broken record about linearity etc) and thusly has nothing to do with interpreting ambition.

They invested everything in the story, that was a gamble for sure but also highly ambitious. After the open FF XII, Square aimed at something completely story driven and character centric. Linearity and freedom are issues of course but have never been major  (I said major) elements for FF games, ever since VII they have been trying to tell the perfect story. This game is an extremely large scale ride, full of original locations with unmatched design and aesthetics that are some of the most refined in the series. The battle system is not flawed, it was rarely taken advantage of for the sake of making the game easy (aiming at western audiences) battles like that with Tonberry or the long Gui were an excellent combination of action, rpg and strategy as it was originally intended and showed the real potential of the battle system.

Toriyama said he wanted the game to be "the ultimate single player RPG". That is ambition and I repsect that.

I have a general comment to make on that.

In reality we know shit about FF Versus. It was only until last september they said they moved to full scale production. That was only months ago.

We ASSUME & SPECULATE they have spended  lots of cash / time / resources on Versus over the years.