Chocobo de Battle was a fighting game, that was going to be a spin-off of the Final Fantasy series, starring Chocobos getting pit together in a battle arena. The game was first announced in 1997, in an issue of the Japanese magazine Famitsu. It was being developed by Square USA, and would have featured full-3D graphics. The game was to be released in the Arcades, and would have been Square's first arcade game. A port was also considered for the PlayStation.
The game would have used a behind-the-character view, and would also use motion controls, hovering your hand above a blue area to move and execute attacks. The game was later cancelled, and only a short gameplay video exists online.
Videos
Chocobo de Battle - Siggraph'97 Works