Way back in 2006, Marvel announced they were making an MMORPG in the vein of “Hero City.” Nearly no news or updates have been released since then, so it isn’t too surprising that Marvel and Microsoft have canceled the project. In a press release the following statment was released:

Marvel and Microsoft have agreed to end development on the MMO. It’s just something that we felt that, for us and for them, it would be better if we ended development. When we first entered into the development and agreement of the development of ‘Marvel Universe Online,’ we thought we would create another subscription-based MMO. And if you really look at the data there’s basically one that’s successful and everything else wouldn’t meet our level or definition of commercial success.

So basically they were scared of “World of Warcraft?”