U.S. software giant Microsoft Corp. has scrapped development of Xbox game "True Fantasy Live Online," which had been slated for release in Japan during the winter, its Japan unit officials said Friday.

According to Microsoft and developer LEVEL-5 Inc., a game- software production company in Fukuoka, the cancellation was due to the lack of progress in creating a new type of online experience.

The game's launch had been postponed twice before.

The role-playing game, which had been in development for more than two years, was supposed to let 3,000 gamers join a fantasy world where they would be able to choose from various roles and battle real-time through high-speed communications networks.

It was scheduled to hit the Japanese market first and had been marketed as Microsoft's biggest online game.