Unfortunately work was put on hold for Mega Man Legends 3 Project following the devastating Tohoku earthquake. However work has now resumed of the game.
Producer Tatsuya Kitabayashi announced on the game’s blog post that work has now resumed in this 3DS sequel to the Mega Man adventure series.
Kitabayashi stated that he wanted to help out by “making something everyone will enjoy, to help restore positive feelings.”
Source: Joystiq