ZAM (thanks Massively) has an official statement from Blizzard on last night's rumor that development of Blizzard's unannounced MMORPG codenamed Titan was back to the drawing board after a 70% reduction in the game's development team, setting back the game's release to at least 2016. While not addressing any of the specifics, the statement indicates the report has the gist of the situation:

We've always had a highly iterative development process, and the unannounced MMO is no exception. We've come to a point where we need to make some large design and technology changes to the game. We're using this opportunity to shift some of our resources to assist with other projects while the core team adapts our technology and tools to accommodate these new changes. Note that we haven't announced any dates for the MMO.