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The issue was that there was no distinct VS Bots, VS Players mode separation, and teams ended up uneven frequently.
There was a two week beta test end of August 2024. The game feels a lot like Pokemon Unite, including the excessive number of bots to fill games.
All the people saying it's dead are just being depresso doomers.
The game is quietly being updated and you can see the constant updates happening over on steamdb.
They had a lot of feedback from the beta, and a LOT of mechanics were being changed around. People are impatient and while it would be nice to get more feedback, Bandai has never been super good about being "Transparent" with their games developments because it often backfires with people making hype trains around mechanics that "might be" and causing backlashes when misinformation gets spread.
Goku day is on the 19th of this month, so there's probably going to be said about the game by then, but just to put it into prospective of how much was being changed:
The Great Ape Mechanic was so bashed that they're reworking that ENTIRE mechanic by removing it and replacing it with something entirely new
The shop system is being changed to work more like Smash Legends with direct unlocks instead of tokens based on account level.
The entire role system is being reworked from the ground up because tanks were too dominant (Vegeta was a problem and I'm saying that as a vegeta player. It wasn't uncommon for me to 1v3 and walk out with full health just because of how damn strong he was, and I'm hardly a "good" player.)
And the netcode was also something that was pointed at being something that needed reworking since sometimes you could "lag" out of combos.
So they're practically having to rework most of the features of the game.
It takes time to make, test, fix, test, adjust, test, fix, test and test features when you're taking entire mechanics and changing them into something entirely new.
So TL:DR: Yes the game is still in development, they're updating the game pretty constantly, just not telling everyone about it, a lot of features are being moved around and it's going to be pretty much a different game compared to what the beta was in almost every way.
They're pretty much remaking the game from the ground up post beta since so many people complained. Likely updates coming on 19th of this month.
If you're looking for something to fill the gap. Pokemon Unite and Smash Legends are great alternatives to sate your appetite until Multi drops, and it will. Not only that, Multi did NUMBERS when the beta was around and that was just on PC. On mobile it's going to have even more players and with crossplay being a thing, it's going to be stacked since pretty much every single dragon ball game has had insane support. Even Xenoverse had support for decades.
If there's one game series that's going to survive and do well, it's dragon ball, even just on IP alone lol.
They didn't say they were reworking the class system, they said they were going to nerf tanks, which is something easier to do.
They said they were going to tone down the great ape and remove a bit of its buffs, but were still planning on making similar aspects of the endgame similar to the great ape (as in, super strong and game ending), since they really want to focus more on fast matches that don't take super long.
In my opinion, the biggest changes they're doing is polishing the models and animations, since they were a couple of ones that needed a little bit more work, like goku's "you fool" finisher. They have to make a couple more champions, i would argue that the minimun number should be close to 20 at least, but that's for them to decide.
Also they i'm thinking they want to make more modes like land grab, but i don't think land grab did super well based on videos and random twitter comments i read but there's a chance it did alright.
I want to think that we will hear about this game at the end of june at the latest, that's my prediction, so it's not guaranteed at all but i can always hope it's true. I do think they would probably want to do a little beta to iron out the last details and then release the game a little later, but we shall know when they break the silence.