Today, Polytron announced via its Twitter that it has halted production of the game. "It's with a heavy heart that we announce that FEZ II has been cancelled and is no longer in development. We apologize for the disappointment." Various outlets have followed up with Fish to confirm this.
"It's true," said Fish in an email to Joystiq.
The news followed a bit of Twitter drama between Fish and videogame journalist Marcus Beer. Beer, on his show Invisible Walls, attacked Phil Fish and Jonathan Blow (whom he fondly referred to as "Blowfish") for refusing to answer questions about the Xbox One.
At the end of a Twitter joust between Fish and Beer, Fish promptly locked down his Twitter and announced the cancellation of the game.