We’ve learned (via Games Talk) that Keiji Inafune’s cute and colorful game, KAIO: King of Pirates, has been cancelled.

The game was a collaborative effort between Comcept and Inafune-san, set to be published by Marvelous. The publisher was touting the game as a bold new IP for the company, but changes in the market made the new trans-media project a difficult one to handle. Marvelous has decided to cancel the project and has, as a result, lost 461 million yen (roughly US$3.8 million).

KAIO: King of Pirates was first revealed in 2011 and was originally meant for a 2012 release, which release was then delayed into 2013, 2014, and has now been cancelled.