Mythica's official site was updated with very troubling news:

Based on a careful evaluation of the competitive MMORPG landscape, Microsoft Game Studios has decided to cancel the Windows-based game “Mythica.”  As a result of this effort, job eliminations within Microsoft Game Studios will take place, and up to 40 employees may be impacted. 

Adam Waalkes, studio manager at Microsoft Game Studios, stated: 

Our goal with ‘Mythica’ was to create a truly innovative massively multiplayer online role playing game.  While the game looked ready to deliver advancements to the genre, after careful evaluation of the MMORPG landscape, MGS has decided to stream-line its portfolio, making fewer investments in this genre. After a rigorous review of current and future projects, the decision was made that Mythica would not be one of the projects we would continue to invest in.   

We truly appreciate all the support ‘Mythica’ has received from its fans and the games community

This is very sudden, and certainly unexpected. We will keep you updated as we have more details.