Eurogamer has recently released an article explaining why the Xbox failed in Japan. The article also contains some information regarding to the status of Crimson Dragon. Microsoft answered Eurogamer’s enquiry about the status of the game and made the following statement:
Crimson Dragon on XBLA was initially slated for a June 13 2012 release in Japan, however the release has been delayed. We don’t have a release date to share at this time, but we’re excited about Crimson Dragon’s progress, and we are continuing to work on it with the teams at Grounding and LandHo!
Unfortunately the comment doesn’t reveal anything new and doesn’t mention whether or not Crimson Dragon is still planned for a release on the Xbox 360. But even though the lack of updates is unfortunate, we’re looking forward to seeing how much the game has changed since the last demo shown at PAX.