It once seemed like having Hironobu Sakaguichi and Nobuo Uuematsu, respectively the famed designer and composer of Final Fantasy fame, coming to work for Microsoft was a huge win for the Xbox 360. However, the two have failed to capture the hearts of gamers in any big way since Mistwalker Studios was formed. Both of the studios' titles, Blue Dragon and Lost Odyssey, were solid games that didn't make much of a splash at retail. Now, the company's third Xbox 360 title has been canned.

AQ Interactive, the Japanese publisher of Mistwalker's games, used Christmas Day to quietly announce its plans to cancel Cry On, the third title from the studio, which was due for the Xbox 360. An action RPG featuring the artwork of famed Japanese artist Kimihiko Fujisaka, Cry On remained largely shrouded in mystery—little information and no in-game media were released. "[We] decided to cancel the project after analyzing the current market environment and forecasts for the future," 1UP was told by a spokesperson. "We deeply apologize for troubling those who were awaiting its release."

It's disappointing to see what could have been a big, and potentially exciting, JRPG for the Xbox 360 disappear into the industry's growing dead-game sea, but it's clear that the traditional style of play offered by Mistwalker titles isn't necessarily attractive to Xbox gamers worldwide. There's no word on what, if anything, Mistwalker Studios plans to work on now.

http://arstechnica.com/journals/thumbs.ars/2008/12/26/mistwalker-360-action-rpg-canned

Already posted, Search Cry On Cancelled or something.

That sucks.  Lost odessey is good.  Blue dragon and most earlier rpg's on the 360 sucked though.  Can't blame people for being wary.  Plus, lost odessey is almost like reading a book at times.  Lots of people don't like that. I don't, but the game was good enough that I played it anyways.  The company killed itself, not the 360.

@Cidien

...the company is not dead. AQ Interactive were publishing Cry On, not Microsoft, and they are currently going through hard times, hence the cancellation. Mistwalker is still alive and well.

The article also got two details wrong...

1) "AQ Interactive, the Japanese publisher of Mistwalker's games"

2) "There's no word on what, if anything, Mistwalker Studios plans to work on now."

pfft!

Old news....like 3-4 days!

We all knew Cry On was in trouble is was prolly cancelled ages ago.

Yeah, pretty big fail. Especially when Mistwalker just announced a new game (which can hopefully sell >50,000 units!).

the 360 is probably the most Western console this generation. WRPG's and FPS's sell extremely well on it. With this said, is there room for JRPG's? I'm expecting JRPG fans to be strongly occupy Japanese consoles.

Lost Odyssey 2 would be a million seller if it was made(I'm not trying to make any sales predictions).  The new Blue Dragon games might do well but it might not.  That RTS Blue Dragon game sold very poorly despite the fact that the franchise is huge in Japan. (ex. the anime gets high ratings there)

 We'll find out when FF13 drops.