Gameinformer just had a bit about this in their latest magazine.
Basically just stating that we haven't heard anything substantial for awhile now.
Cancelled? I don't think so, 6 years worth of developing isn't something that any developer would like to throw down the drain. Plus it's been on the backburner for most of those 6 years. It just recently (sept 2011) went into full production.
I'd say the odds that it was in development hell sometime during that 6 year time could be a very good possibility.
But I still see it being released with the next year. Who knows, maybe they are holding off and waiting for next gen console.
I could however see it being absorbed into FFXV.
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