Rumor has it that the game is cancelled (
http://kotaku.com/5010956/has-square-enix-cancelled-final-fantasy-agito-xiii)
Here's the paragraph in question...
"Also, due to internal loses on development, the company went back and reconsidered in development titles. A mobile game has been shitcanned, apparently. "Concerning the title that connects to the home console," Wada said, "development has been ceased as it is unsuitable at the current time." Wada's remark has lead to some to wonder whether that cancelled mobile game is Final Fantasy Agito XIII as it was supposed to connect to upcoming home console game Final Fantasy XIII."
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That is probably one of three games: Final Fantasy Agito XIII, Kingdom Hearts: Coded, or The 3rd Birthday. I think that the game that is cancelled is The 3rd Birthday, which is the 3rd game in the Parasite Eve series. This game had a lot of top developers working on it...
http://en.wikipedia.org/wiki/The_3rd_Birthday
Designer(s)
Yoshinori Kitase (executive producer)
Hajime Tabata (game director)
Tetsuya Nomura (creative producer, concept design, character designer)
Isamu Kamikokuryo (art director)
Motomu Toriyama (scenario design)
Yoko Shimomura (composer)
Whoa! Those are most of Square Enix's top developers, working on one title together. If the game is cancelled, that would free them up to work on their other titles those people are working on: ...
Final Fantasy XIII
Sigma Harmonics
Final Fantasy Versus XIII
Final Fantasy Agito XIII
Dissidia: Final Fantasy
Kingdom Hearts: Birth By Sleep
Kingdom Hearts: Coded
Kingdom Hearts: 358/2 Days
I listed all the games that the people from The 3rd Birthday are working on, of course they are not working on all games together though. I think that Final Fantasy Agito XIII and Kingdom Hearts: Coded may be too popular to cancel, in comparison to The 3rd Birthday, which I don't think will be as popular. I wonder about this. I hope we get more news soon.