For a while now, people were debating on whether or not Kingdom Hearts: Coded would end up even making it to the market with the other two titles. But Famitsu did update, pretty recently, with some news dealing with the game.

Looks like Coded is still in development. Nomura is still adjusting the motion and feeling of the characters to fit in with the Kingdom Hearts atmosphere, but thinks it's been reproduced sufficiently. The team is making a test edition for the game, but it will be different from the final version they'll end up using.

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Source: Famitsu