According to a report from SPOnG, Koei is still in development of the Fatal Inertia title for PS3, thereby allaying fears of "indefinite delay".

SPOnG spoke with Koei"s PR rep in the UK this morning (July 3) who assured us that Fatal Inertia was still in development for PS3 and "definitely would not be canned" as a number of reports have already suggested earlier today.

Lead Game Designer Michael Bond says of Fatal Inertia, "By designing Fatal Inertia"s gameplay around a physics engine it not only allowed us to create a truly different driving model, but it also helped us create a set of dynamic weapons with multiple tactical applications… We"ve based many of the game"s weapons on straightforward physical principles, and by doing so we"re giving players the freedom to come up with their own creative ways of using them- ways that even we are still discovering."