Pretty much confirmed from what he said on Twitter just now. He laughed about the rumor and then went on to say they finished a regular meeting on the game, saw some towns presentation and whatnot.
"It seems someone is spreading a false rumor about Versus being canceled. Heh, just a few moments ago a regularly scheduled meeting for Versus ended. If you were to see the city etc. presented today, you wouldn't be able to stand from surprise, lol."