Greg, the Dev Room Community Liaison, posted in his Capcom community blog an outline of why the game was being cancelled. The MML3 Project got the community intimately involved with the developers to pitch ideas that could very well be implemented in the final game. The project was also a gauge Capcom used to see if they’d actually go through with the game and unfortunately, Capcom felt that it wasn’t meeting their expectations.
A prototype will not be released, let alone an actual game. The Dev Room site will also be closing while fans who successfully pitched ideas will receive commemorative gifts in memory of the game. It was stated that the departure of Inafune-san had nothing to do with the cancellation of the game.
First Mega Man Universe, now this? Well, good night sweet, blue prince.