I don't know much about it, but I believe that's the MMO-ish thing that SNK announced around the time XII came out. It IS official, but I think it was only announced for release in China.
If you remember, there was gameplay footage of a KOF MMO (which looked like a 3D beat-em-up) released, so people thought this games might be related. But then SNK specifically said that this was completely separate.
Anyway, no idea what became of it. As far as I know, it was never released, although MMOs fall below even cell phone games on my list of interests.