"Someone has been spreading a false rumor that Versus has been canceled, it seems," said Wada, according to Siliconera’s translation. "[Laughs.] Just now, we finished our regular Versus meeting. If you could see the city in today’s presentation it would sweep you off your feet."
The lack of any information regarding Tetsuya Nomura’s Final Fantasy Versus XIII in the past few years, combined with Square Enix’s decision to apparently just keep producing more direct sequels to Final Fantasy XIII, made Kotaku’s report about its cancellation a believable one, though apparently a false one. We'll have to see.
The easiest way to convince skeptics Final Fantasy Versus XIII is alive and kicking would be to show the long-promised game, but we’ll have to wait a bit longer for that.