I'll post the same thing I said on Siliconera with a few revisions.
I laughed, this is absolutely not true. My reason? It's Versus XIII, I don't care how long it's been in development hell, seeing as Duke Nukem made it out(barely), but this is Versus XIII. We've seen enough to at least know it's not just thrown together. That trailer showed a lot more then most people realize, the amount of programming, tweaking of the gameplay, AI, etc. Versus XIII will come out even if it does undergo a name change and when it does I'll buy it, until then there are other games to obsess about and they all have release dates sort of (Borderlands 2, RE6, Black Ops 2, AC3, AC3DS, FFXIV 2.0, Guild Wars 2, etc, ). Square Enix may be lacking in the mental area, but they aren't that dumb to let a game like Versus XIII get the shaft.
Don't fall into the hype besides this all came from Kotaku and even worse the writer is someone who I personally feel just trolls for views to his articles. Wait until September 1st and we'll all see what they have in store for Final Fantasy.
@Noodle no problem. I just keep running across this rumor and a lot of people are really taking it seriously. I can see the "Versus XIII" namesake being canned (but I've been prepared for that since the "Agito" change to Type-0), but I can't see it being 100% cancelled just like that. If they do announce anything revolving around Versus XIII, I can see it being introduced to us as a new IP(this would be pretty awesome, but this is slim) or the next numbered Final Fantasy. I mean look at the most recent trailer and tell me who'd in their right mind would want to cancel this? Especially since it holds the title as the most anticipated game ever for PS3, with millions of people waiting for it's release and it has the potential to help boost SE profits considerably.
It seems someone's spread a rumor that Versus has been canceled. Huehue, we actually just finished one of our meetings on it. You would have gone weak in the knees if you could have seen the game's city in today's presentation. ~lol