"Reports that development for Final Fantasy Versus XIII is on hold are false," countered Square Enix. "The truth of the situation is that when free, some staff from the Versus team have been helping with the XIII team on development of Final Fantasy XIII. Development for both titles is continuing as originally scheduled."
That almost sounds like good news, until you realize that the "originally scheduled" release date for either title is likely quite far off. And that makes us so very, very sad.