Sony Japan announced a few days ago that it has canceled any further development of Room, a scaled down virtual world/network that it was creating for the PSP (PlayStation Portable) device.

Room was a scaled-down version of PlayStation Home, and, according to Gamasutra, was to feature “cartoonish avatars gathering together in virtual rooms to chat, write blog posts, customize their appearance, share pictures, and participate in other social activities.” It had been in development for six months and had entered a beta testing period, but plans were halted for unspecified reasons.

Sony will continue to develop other networked services for the PSP and will take the feedback from the Room beta testing into consideration for other services.