Square Enix reportedly canceled all development on Final Fantasy Versus 13, according multiple unnamed sources speaking to Kotaku. The planned spin-off, announced alongside Final Fantasy 13 and the Fabula Nova Crystallis Final Fantasy series in 2006, has only put in the briefest of public appearances since that initial reveal, surfacing only occasionally in the six years since it was announced with little more than teasing glimpses.
The decision apparently came down the chain only in recent weeks, according to one of Kotaku's sources. The publisher reportedly plans to make no official announcement about the change in plans, intending instead to let it be forgotten as no additional news emerges. Some portion of the work done on the scrapped game is apparently now being used in the development of Final Fantasy 15, according to another of the sources, though it's unclear if that's just Versus 13's code and assets or if development staff have been shuffled around as well.
A statement from Square Enix to Kotaku amounts to a "no comment" on the matter. Would any of you be surprised if this turned out to be true?