Although Final Fantasy XI was the spearhead of Microsoft's presentation at E3 2005, the game saw limited success on Xbox 360. This largely happened due to the previous release of the game for the PC and Playstation 2, three and respectively two years ago. Afterwards, developers at Square Enix were rather slow to feature a sequel to the Final Fantasy series, focusing on other titles like Front Mission Online instead. At least that's what they told investors, as they expect no fresh online adventures this fiscal year, ending by March 2007. However, it doesn't mean that nothing is happening in the studios.

The Japan based Nikkei Net news service reported yesterday that Square Enix is currently working on a new game and it may very well be Final Fantasy XII. The MMORPG is planned to be developed for the Xbox 360, Playstation 3 and Windows Vista platforms. We do know that Square Enix had previously shown in-game trailers for a next generation MMORPG engine, although no final product has been pinned down. It is still unclear if the engine's new technological improvements will be poured into Final Fantasy XII or another undisclosed title in development. Judging by the release date of Windows Vista, to be announced sometime in 2007, it is safe to assume that either way, the PC version will be launched next year at the earliest.

Hours ago, Square Enix adressed the rumors by stating there is no sequel for Final Fantasy XI in the making. Instead, the development of an entirely new, next generation MMORPG, title is now confirmed. Final Fantasy fans will surely be disappointed, but not all is lost.