I know what happened to this. The company that was localizing the game
could not get enough support. There simply was not enough interest. This
was to be the company's first title for a video game. They ended up not
entering the video game market after some of the people on top decided it
best to back out and stick to what they know.
Ys will be ported to the PS2 with enhanced graphics and sound. There was
another US company who had interest in it. I am unsure if they ever
acquired the license from Falcom and Digicube.
Falcom is working on a Ys VI (yes, 6!) though no specific platform has been
confirmed.
They are also working on a Ys 3 Eternal for the PC. This will be much the
same as you have seen in Ys Eternal.
::I would also like to know what happened to the English version of the
PC remake. Maybe I'll email NCS...::