From capcom itself

We'd like to thank you for your ongoing loyal support of Mega Man Legends 3. Today, however, we must regrettably announce the discontinuation of this project.

From the outset the MML3 Project was intended to give gamers across the world insight and input into the development process. Part of this process includes an assessment of whether the title will go into full production, and is based on a number of criteria with input from different sectors of the company.

Unfortunately it was not felt that the Mega Man Legends 3 Project met the required criteria, and it is with regret that we must announce that the Mega Man Legends 3 Project has been cancelled, meaning that Capcom will not be releasing the Prototype or the full game. Additionally, updates of the Mega Man Legends Developer Room will cease as of today, though the North American Developer Room and its forums will remain open indefinitely.

We can only express our deepest apologies to all of you who have lent us your unending support, including participation in the Mega Man Legends 3 Developer Room. On behalf of the entire Legends team, please accept our sincere apology for failing to meet the expectations of the fans.

We thank you all so much for your extended support of this title and this community, and we hope that you will continue to support the Mega Man franchise as well as other Capcom games.