Stick a fork in it. It's done.

PSU outside of Japan that is. Yes, that's right the Xbox servers are shutting down. I don't think anyone was really surprised after seeing how the game's updates were handled and that it still continued to fall behind the Japanese version of the game. I guess that the closure of the PC/PS2 server wasn't a "huge opportunity" to catch up after all.

Anyway, the servers are closing September 7th this year. Also there will be no free play like the PC/PS2 version had. I assume it has to do with some sort of rule from Microsoft since Xbox silver users can play the game online. I can't see the servers being to populated with this news; if the PC/PS2 servers required its monthly fee in the months before it closed I know I wouldn't have bothered coming back.

But on the bright side there may be a hint of good news. At the end of Edwards post he says:

We look forward to taking our memories and the lessons learned from this game as we prepare to move into the future. There is more news yet to come for Phantasy Star, and there will be much to be excited about in the coming weeks and months. For now, please feel free to share your memories of this game and know we look forward to sharing more adventures with you in the future!

From that statement I guess we can expect some news about PSO2 coming west soon. The sooner it's announced the better (still hoping for global servers).