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SE never considered the Ogre Battle series dead. It's just that Matsuno got sidetracked because of the whole FF12 project. FF12 was originally meant to be released in 2003, but was eventually released in 2006. If it hadn't been delayed so many times I'm sure we would already have a few new Ogre Battle games by now.
Not changing this sig until Square Enix reveals that codename FORTRESS is actually FINAL FANTASY XV. You read it first on GameFAQs.