Update: According to Sega, it seems the PS2 port is NOT cancelled, as earlier online reports claimed. The game is still on track for a release sometime in the 2003 fiscal year (March 2003 - February 2004). Long live the Internet indeed. Thanks to GameSpot for the news.
In a move sure to disapppoint PlayStation 2-owning Sega fans, the upcoming, yet delayed port of the Dreamcast RPG, Skies of Arcadia (or Eternal Arcadia in Japan), has been cancelled, according to Sega.
Taking into account the considerable delay of the game last month, this news probably shouldn't be too surprising.
The GameCube version of the game however, is still on track, and should be released before the end of the year. It's still not known what this version will offer that the DC version didn't have, besides possibly enhanced visuals.
As usual, more news is likely forthcoming on the game from E3, at least on Nintendo's side of things.