Development on True Fantasy Live Online for the Xbox has been halted, publisher Microsoft and developer Level 5 revealed via a press release issued today. The game, originally scheduled for Japanese beta test in the Summer and release some time this Fall will no longer see the light outside of the Level 5 development studios.

As for reasons for the cancellation, the press release stated, "Development was continuing for a release this Winter, but we still did not see progress towards a state that would deliver a new form of Online experience to users, so we regretfully decided to stop development."
Level 5 president Akihiro Hino posted a few comments on the cancellation at the company's website. "The game had been showcased to the media, the world of TFLO was already complete, and within it, it was possible to live a virtual life to a degree," comments Hino. He continues, "We continued development with the aim of making a network game that we ourselves would want to play. However, development required more time than expected, and as a result, the amount of time people would be able to play slipped considerably."

Following an apology, Hino continues, "Taking this as a lesson, we will polish our development capabilities and continue to take new challenges. We hope that you will support us."

True Fantasy Live Online, announced at E3 two years ago, was meant to be one of Xbox Live's killer apps for the Japanese market. With a well-known developer (Factor 5 is currently development Dragon Quest VIII, likely to be the biggest selling title of this generation in Japan) and some tantalizing trailer footage, many were eagerly anticipating the massively multiplayer Online RPG's release. Although appearing, to good review, in playable form at last year's Tokyo Game Show, delays took the title away from its original Japanese release this Summer.

We expect clarification into the cancellation to come from Microsoft Japan at its upcoming Summer press briefing, scheduled for some time in the next few weeks.

IGN Link

Bad news for all of that were looking forward to a promicing game. News is from IGN.

On another odd note, Malice shipped, but the publisher didnt tell anyone really and it just kinda "showed up" in stores.

Sigh....