Final Fantasy XIV director Hiromichi Tanaka has told German site 4players.de that Microsoft was unwilling to deal with Square Enix over the use of Xbox Live with the MMO.
Tanaka said that MS had allowed to let previous MMO Final Fantasy XI onto the service because it was still in its infancy.
Now that Live has become established, though, Microsoft has said no to the MMO. Tanaka said in the interview that all development on the 360 version has since been cancelled.
Last year at gamescom, Tanaka told VG247 that “discussions” with MS over FFXIV appearing on 360 were held up because of issues with Xbox Live.
Final Fantasy XIV was recently dated for September 30 worldwide for PC, with a collector’s edition dropping before then on September 22.
The PS3 version, now the game’s only console SKU, will launch in March 2011.