[Source] First announced at G-Star 2012, it has been announced that Nsquare will be stopping development on Mabinogi II: Arena. Nsquare is the joint team formed after Nexon bought over NCsoft, and the team will now move on to other new projects.
When Mabinogi II: Arena was revealed, there were mixed reactions from the gamers on how the massive open world became something similar to an action dungeon crawler. It seems the team at Nsquare noticed this, citing “current market situations” and “feasibility” as the reasons for the discontinuation and noting the game will be revisited in the future.
The confirmed new projects Nsquare currently have include MapleStory 2 and a mysterious Unreal Engine 4 online shooter (unconfirmed). Of course, there is always a chance of other secret projects being started, and we shall see if there are any surprises in the near future.