Sony Computer Entertainment Japan has announced that they will be halting development on Room, also known as PlayStation Room, which was first announced last year at TGS 2009. The service was supposed to be a counterpart for PlayStation Home on the PlayStation 3, using 3D cartoon-like avatars in contrast to Home's life-like avatars.
It could be launched directly from the PlayStation Network section of the PSP's XMB after it was downloaded by PSP owners in Japan. Owners would have been able to invite other users into their rooms to chat. Free and additional premium content would have also been available. All models of the PSP would have been able to use the service.
It began beta testing in October and lasted until today when the service was shut off. It's currently unknown what exactly caused Sony to shut down the service.