Final Fantasy Versus 13 is still very much in development, according to Square Enix boss Yoichi Wada. Recent rumors suggested that work on the game had been canned and that resources from the project would be shifted over to be integrated into Final Fantasy 15. Wada confirmed on Twitter that this is not the case (via Polygon).
Final Fantasy Versus 13 was announced in 2006 as one component of the Fabula Nova Crystallis Final Fantasy series. Various trailers and screenshots have emerged in the six years since the game was originally announced, but that's all. Wada offered no hint as to when the rest of the world might see FFv13, but hopefully the recent rumor will inspire Square Enix to put some kind of demo together for one of late-2012's upcoming trade shows.