It's definitely a sad day for fans who are still just as devoted to Final Fantasy as they were back when they were actually good games. According to Kotaku, Final Fantasy Versus XIII has been officially shut down.
The latest installment of Square Enix's groundbreaking franchise had been a work in progress since it was originally announced back in 2006. Yes, you heard that right...a whopping six years of development only to be cancelled in the end. It's not entirely unexpected I suppose, as we've yet to see anything concrete from the Final Fantasy Versus XIII other than some screenshots and light media.
Square Enix has apparently decided not to make an official announcement for fear of the news having a negative effect on its stocks. Hiding from your problems has never really worked in the past but maybe there's a first for everything.
However, the news isn't all bad as Square Enix is also apparently taking it's resources from the cancelled title and moving them towards the next true installment into the JRPG franchise 'Final Fantasy XV'. This is something that has made me somewhat hopeful for the future of the franchise. I, along with many FF fans, would love to see future Final Fantasy titles pay homage to older installments. Seeing as most people lost interest after Final Fantasy X, Square Enix should really take a suggestion from the fans and give the people what they want.
Addition content related to FFXIII has been hinted at by Square Enix as of late but it's still shrouded in mystery for now. Check out Square Enix's 'Final Fantasy 13 Lightning Saga: New Developments Presentation' on September 1, 2012 for more info.