Square Enix held their shareholder conference last week, which was reported on by Game Watch (Japanese)
. According to a summary by Kotaku
, president Yoichi Wada said the following:
"Concerning the title that connects to the home console, ... development has been ceased as it is unsuitable at the current time."
Kotaku speculates that the title discussed might be Final Fantasy Agito XIII. Are they correct on this one? Maybe anyone who knows Japanese could shed some light.