According to 1UP, when approached with the questions as to why the game had been cancelled, AQI responded with the following statement:

"AQI decided to cancel the project after analyzing the current market environment and forecasts for the future. We deeply apologize for troubling those who were awaiting its release."

So it looks like J-RPG fans are truly left to cry on, or at least until another publisher hopefully picks up the title.

Credits to 1UP.com for the story.