Yes, it's usually called "Vaporware" and is illegal when caught doing it. It's very likely they're only a few active people working on it. The progress made so far seems like the group contains 1-2 coders, the standard 3-5 graphics team and the 2 map creators.
Chat with our AI personalities
How I Can Get Amethyst Mason For Ninja Warz!
you can play it on your facebook
There is one game like Ninja Warz, its called office wars. yes it's new. Braaains too.
Definitely not a scam.
office wars but from 1st of February it was closed down D: