Square Enix is taking significant strides to improve its much-maligned MMO Final Fantasy XIV. Company president Yoichi Wada announced today that it has decided to restructure the entire development team under a new leadership while also delaying the PS3 release indefinitely.

Going forward, Naoki Yoshida will assume the role of producer and director. Square feels that Yoshida has the spunk to turn things around, noting that he’s “a charismatic leader possessing the skill to bring together and effectively helm a team which encompasses a wide range of responsibilities.” Furthermore, several new leaders have been handpicked from existing projects to work on XIV.

To maintain trust among fans, Square has decided to extend the free trial period until it is able to present a “concrete plan outlining FFXIV’s new direction.” Due to the current state of the PC version, its PS3 counterpart has been put on hold — indefinitely. It was originally scheduled for a March 2011 release.

Pretty significant shakeup here. Here’s hoping it all works out.

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