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With the Final Fantasy XIII hype machine in full gear, we haven’t heard about that other Final Fantasy PS3 game, Final Fantasy Versus XIII.

In the latest issue of Japanese magazine Dengeki, Tetsuya Nomura provides an update. “The progress of developing Final Fantasy Versus XIII is going well,” he says.

Nomura is surrounded with much of the same staff he’s been working with since the FFVII days. According to Nomura, the staff and he are in tune and very much on the same page — they even catch things before he says them.

Currently the team is testing the battle and map mechanic over and over again as well as checking the game’s lighting. “We did a lighting test for the cityscape during noon and evening,” Nomura says. “It really gives a good impression — of a city right before your very eyes.” Things like the character’s actions are coming together bit by bit.

And with Final Fantasy XIII getting a new trailer at E3, Nomura adds, “I don’t want to lose [to FFXIII] .” While Final Fantasy XIII has been announced for the Xbox 360 in the West, Final Fantasy Versus XIII has only been announced for the PLAYSTATION 3.