Mega Man Legends 3 Project Liason "Gregaman" has posted what is the last update to the Devroom on Capcom Unity, bearing the bad news:
"We'd like to thank you for your ongoing loyal support of Mega Man Legends 3. Today, however, we must regrettably announce the discontinuation of this project."
The post goes on to detail the insight the Devroom allowed fans, and that the game did not meet the criteria required of different sectors of the company. With that, the fate of not only the game, but the Prototype Version have been sealed. Despite this, the North American Devroom and its forums will remain open indefinitely, giving fans at least one outlet to voice their despair.
"We can only express our deepest apologies to all of you who have lent us your unending support, including participation in the Mega Man Legends 3 Developer Room. On behalf of the entire Legends team, please accept our sincere apology for failing to meet the expectations of the fans."
"We thank you all so much for your extended support of this title and this community, and we hope that you will continue to support the Mega Man franchise as well as other Capcom games."
We believe it goes without saying that this remains to be seen.
An FAQ follows the official statement, outlining what happens and what can be done with user contributions, as well as clarifying that "The cancellation of the MML3 project is in no way related to Inafune-san leaving the company." They also note that in spite of this and the cancellation of Mega Man Universe, "Mega Man is still an important franchise within Capcom’s portfolio and we will continue to pursue opportunities to create new titles in the series."
Naturally, you can leave your own anguished comments below (but please avoid heavy cursing; that will get caught in the filter, and won't help anyone). On the bright side, those who felt the game shouldn't happen just because they were not fans of the series should be good and happy now.