On September 29, 2010, at a Nintendo press conference regarding the Nintendo 3DS, a brand new installment to the Mega Man Legends series, Mega Man Legends 3, was announced for said handheld console. More information about the game was announced at the New York Comic Con in October of the same year, including two new characters: Aero and Barrett. However, on October 29, 2010, one month after the game was announced, Keiji Inafune, who co-created the Mega Man series, announced that he would be leaving Capcom with the intention of "starting his life over" after 23 years of working. With Inafune leaving, he no longer owned any of his creations and was not allowed to help the company work on Mega Man Legends 3, or create any new installments to the franchise, even if he wished to.
The story would have Aero and Barret joining with Roll, Tron Bonne and many others to rescue Mega Man Volnutt, who was stuck in Elysium since Mega Man Legends 2.
In spite of Inafune leaving the company, they announced that they would be making a special application on the Nintendo 3DS' App-Store like program called the "Nintendo eShop", that would be called Mega Man Legends 3: Prototype Version, and would include 10 missions. All of them would serve as a prologue to the game's story, and would all have Barrett as the playable character that would be released in 2011. However, on July 18, 2011, Capcom announced that both Mega Man Legends 3 and the Prototype Version had been cancelled and stated that neither would ever be finished, nor released, despite many denied requests by Inafune to finish the game. GamesRadar, (a gaming website), said that the only person who played both games was Chris Hoffman, a journalist who worked for the now defunct Nintendo Power magazine.
In a interview with Siliconera, members of the Cup Of Tea Productions (Responsible for the voice recording of this game) confirmed that the Prototype version was close to completion.
Since the game's cancellation, there has not been a Mega Man game outside of Mega Man appearing in Super Smash Bros. for Wii U/3DS, and an anniversary compilation of the six NES games for all consoles and its sequel for the remaining (excluding Mega Man and Bass). This has led many to believe Capcom is silently killing the franchise due to Inafune's departure.
On August 8th, 2016, the GetMeOffTheMoon Youtube page released a documentary focusing on the game's development.
Inafune recently confirmed in a interview, that he would like finish the game if he gets a chance despite Capcom rejected his offer in the past. It is unknown when Mega Man Legends 3 would resume devolopment due to increasing fan demand over the years and the dissapointment of Inafune's own Comcept game Mighty No. 9 and the upcoming Red Ash. With the reveal of Mega Man 11, the chances for Mega Man Legends 3's return has been increased and many considered Mighty No. 9 to be pointless since the franchise isn't dead anymore (for now).