Square Enix CEO Yoichi Wada wants all rumors of the cancellation of Final Fantasy Versus XIII to cease and desist immediately. Just because the game has supposedly been in production for six years, there's been virtually no word on the game's progress since its original announcement, and the company has come out and said that they don't want to develop any more games in house, does not mean that the game has been cancelled.
So sayeth Wada from his Twitter account.
It's possible that the game still really is in production, which is fine and dandy, but there's also the possibility that the game is dead and Square wants to save face for a little while. Or, at the very least, they want to make the announcement themselves and not have it trickle down from speculation and rumor. If it is dead, just make it public already. Please stop dangling the carrot.
Wait, what am I saying? This is Square Enix, the company that won't come out and definitively say they won't do a Final Fantasy VII remake. They love dangling the carrot!