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Despite recent rumors to the contrary, Square Enix confirm last night that Final Fantasy Versus XIII is alive and well. The initial rumors surfaced last week when a source told Kotaku that the project had been shelved but that Square Enix might never announce the cancellation for fear of dipping stock prices.
However, last night Square Enix CEO Yoichi Wada took to Twitter to say, "It seems someone is spreading a false rumor aboutVersus being canceled," he said (in Japanese). He continued, saying that he's just been to a meeting on Versus XIII and "if you were to see the city etc. presented today, you wouldn't be able to stand from surprise." (We're assuming this is awkwardly translated hyperbole.)
While we're inclined to believe Wada for obvious reasons, the initial rumor did say that Square Enix would be unlikely to announce the cancellation. Though, that could simply be due to an unreliable source trying to cover his/her story.
Of course, even if it's not canceled, that doesn't mean it will ever see the light of day. Right now the game has been in development for at least six years (it was announced at E3 2006), and there's no release date currently in sight. That's still not exactly a great sign.
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