According to the latest issue of Japanese gaming magazine Famitsu, Project H.A.M.M.E.R., one of Nintendo’s new IPs (Intellectual Properties) shown off at E3 2006 has now been cancelled.

Initial reports of the game being in jeopardy starting coming in when Joystiq asked Nintendo’s Beth Llewellyn for an update on the two new franchise games revealed at E3 2006.

” What’s the status of Project H.A.M.M.E.R. or Disaster: Day of Crisis?

Disaster is still in development. Project H.A.M.M.E.R. we’ve sort of shifted resources off that title. But Disaster is still in development. Again, you have to remember, E3 is one small little blip in time and we tried to focus on a few key titles. Rest assured, there is a lot more going on behind the scenes at Nintendo. You know the company, and we always have stuff going on …”

Now I guess it is only a matter of time before Nintendo make an official announcement regarding the status of the game.