It was only a matter of time when Capcom closed the production on this one. Keiji Inafune had pushed forward on this project and encouraged fans of the series to co-develop along with the developers to create one of the first games heavily developed by the fans. This is how it was looking:
Source: Youtube Channel IGNentertainment
Megaman Legends 3 was planned to be released on the Nintendo 3DS and had a Prototype available for download just a while ago. The developers encouraged fans to give feedback, suggestions, and concept directions on how the game was going to turn out. After Megaman creator Keiji Inafune left Capcom last year, fans became skeptical on whether the development was going to continue. What was said to be a continued effort by Capcom last year has become a sudden halt now. It's difficult; the recession is still affecting a lot of companies in the industry. Capcom says that the cancellation of the game has nothing to do with the leave of Inafune, but rather a matter of the game not meeting required criteria. They have reassured fans that the Megaman Franchise is still a strong series and will continue to grow in the future. I really hope they do. I love them Megaman games.
Source: Gamasutra - Capcom Cancels Mega Man Legends 3
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