SEGA recently replied to an annoyed fan on Twitter, claiming that Phantasy Star Online 2 for the West is delayed, but certainly in the works. After announcing the game for North America back in 2012, there has been virtually no more news for the game, save for appearances at some game events.
The Southeast Asia English version, published by Asiasoft, is currently running and just concluded Episode One with an update a few days ago. If you ask me, I would say that SEGA America is not having the right resources to handle a F2P game right now. Let us wait and see how this develops.