Well, this news may disappoint some, but at least this is for a good reason…
Although Phantasy Star Online would most likely be completed by GameCube’s launch, Naka-san is reconsidering having the game as a launch title. The reason is that Nintendo’s online plans will not be set in stone yet, leaving the user without online capabilities – which as you know is a major part of the game. Props to CCB’s Game Review for the scoop.
The page mentioned above is in Japanese, just so you know. Anyway, told you it was a good reason.
Source: SwirlVision