Final Fantasy Versus XIII is a Playstation 3 game which makes up a part of the Fabula Nova Crystallis:
Final Fantasy XIII compilation. Shown at E32006, according to Square Enix officials,
Final Fantasy Versus XIII is not a sequel, but a whole new, independant story happening in a different world with different characters. The
Final Fantasy Versus XIII battle system is being created by the team who made the battle system for Kingdom Hearts, however it has been stated by Square Enix that it will not just be a "spin off" of the Kingdom Hearts battle system, but a whole new way of fighting. The trailer shown only to the press at E32006 was created by the team who designed Final Fantasy VII: Advent Children, so expect pleanty of fast-paced action when we finally get the trailer, hopefully at The Tokyo GameShow in September 2006.
Final Fantasy Versus XIII will be directed by Tetsuya Nomura who directed Final Fantasy: Advent Children, Dirge of Cerberus: Final Fantasy VII, FFVII, FFVIII, FFX, and a few others.