Keiji Inafune and his company comcept have worked on Kaio: King of Pirates for quite a while since its announcement in 2012, and the last we heard about it, it was delayed to sometime in 2014. Marvelous announced in a press release that the game has been cancelled.
Kaio: King of Pirates was based on the Romance of the Three Kingdoms, but had animal pirates instead of historical figures. In an earlier interview with Siliconera, Infaune planned to make Kaio a trilogy and thought that this interpretation could make the classic story appeal to the West similar to how Dragonball was based on Journey to the West.
According to the press release, Kaio: King of Pirates was a console title that was in development to create a strong IP for the company, but due to sudden changes in the marketplace, and other difficult situations regarding plans they had for its mixed media development, they’ve come to the conclusion that it was for its best to give up on its development.
In the end, the press reveals that Marvelous had lost 461 million yen (roughly $3.8 million USD).