As reported by GameBiz.jp, the two companies agreed to collaborate on the project back in 2015. The game was to be released in 2016, yet development continued for five years.
However, it would appear as though Final Fantasy XI was not reaching expectations, and thus, the pair have agreed that the project should be canned.
The publication has indicated that development on the MMORPG was halted at the tail end of last year. Nexon officially confirmed its cancellation in February.
Due to the game being scrapped, the team working on it has been assigned to other projects.
It is unfortunate that the Final Fantasy game will never see release. However, two other games within the franchise will be released later this year.
Final Fantasy VII The First Soldier will be a battle royale title that will serve as a prequel to the Final Fantasy VII Remake.
Meanwhile, Final Fantasy VII Ever Crisis is set to be a single-player experience with a chapter-based story.