Non-commercial videogame developer Mane6 has reported that their current development project, "My Little Pony: Fighting is Magic", has been cancelled due to a cease & desist letter from Hasbro, the owner of the "My Little Pony" franchise. This is pretty much the end of the line for the project, as Hasbro shows no interest in allowing the fan project to continue in any form. One developer has also resigned from Mane6, and the team has removed all information relating to the project from the internet; stripping their YouTube and Twitch.tv pages of all content.
"My Little Pony: Fighting is Magic" was originally in development for the PC as a tournament-style fighting game. Current unfounded rumors suggest it may return in a non-infringing form.
While the Fantranslation.org staff are most certainly not fans of the "My Little Pony" francise, nor fans of the "My Little Pony: Friendship is Magic" cartoon series, we believe Hasbro's actions to be callous and unjustified. The work in question was an explicitly noncommercial fan production, and they are being shut down with as much ceremony as one might shut down those idiots that make crappy LCD games in the shape of more popular handheld gaming devices. No action needed to be taken to protect their brand in this case. In fact, given the actions of the "Brony" community, I could suggest a large number of other, much more disgusting "My Little Pony" fanworks well worth a C&D from your legal department.