Final Fantasy XIV producer Hiromichi Tanaka has stated that the Xbox 360 version of the game has not been cancelled, only that development has been paused, as talks with Microsoft are still ongoing.

Speaking with VG247, Tanaka stated that previous rumors of the Xbox 360 version being cancelled are false. He added that a demo is in the works and that discussions with Microsoft are still ongoing.

“We’re still talking with Microsoft at the moment so there is no update as to when we’ll start again,” he said, admitting the only roadblock to the game hitting the console at the moment is restrictions imposed by Xbox Live.

Final Fantasy XIV is set for release next month worldwide on the PC, with a scheduled release date for the PS3 in March 2011.