If the game looked any good, I would be disappointed that it was canceled. But it looked horrific, and MS canceling it just confirms to me that it would have been a disaster if launched. I mean, all the shit people are saying about how Xbox needs a Japanese game and this genre is barren and MS has no exclusives and blah blah. If any of this is true, then MS knows it is true, yet they STILL canceled the game. Which is telling.
I'd rather resources and focus go on to games that have potential rather than pouring money into a project that will be shit, just so that the release might check a box in a consoles library. A bad game is worthless.