Square Enix's grandiose plans for a Final Fantasy XIII three-way appear to be a bit stalled. The action oriented spin-off known as Final Fantasy Versus XIII may be coming even later than expected, which should come as a surprise to absolutely no one. According to an interview with Versus XIII director Tetsuya Nomura in the newest issue of Famitsu, he explains that development is the side story is currently "on hold," with development staff of that game now tasked with getting FFXIII out the door.
Given that it's been over two years since Square Enix first showed off its FFXIII offerings and we're still getting trailers devoid of gameplay, we certainly don't expect to see Final Fantasy XIII until well into 2009. We'll pencil in Versus for 2013 or so.
Let's give it up for ten-year console life cycles!
Nomura: Square Enix blow-out at TGS, Versus XIII on hold [Forever Fantasy]