Today I, like many other Vanillaware enthusiasts, awoke to an email from Amazon stating my Dragon's Crown pre-orders had been cancelled. The game has also been removed from the online retailer's site entirely. Apparently Game Stop, and many other retailers, had yet to list the game, so it is difficult to judge exactly what's the status of Dragon's Crown at the moment. Publisher UTV Ignition Games has long remained dormant on Twitter and their website is currently down, further adding to the speculation over Dragon Crown's future. While the Dragon's Crown official website is still up, it hasn't been updated in some time, and no recent news of the game's release can be found there.
No further Dragon's Crown news can be found at Vanillaware's page either. However, it does appear that the developer does plan on going ahead with their other current PSP project, Grand Knight History, which is being published by Xseed. Grand Knight History is still listed on Amazon, but release details are scarce everywhere. That's all for now, more updates incoming as I find out more.
UPDATE: Joystiq is now reporting that the game is indeed not cancelled and still in development. Their article cites a tweet (you're on your own for translations) from the games illustrator in response to the confusion. However, Joystiq does say they are waiting on an official response from the game's publisher.