In an interview with Takeshita, producer of BoF, he stated that BoF isnt dead, it's just resting, there are no plans for now, but there will definitely be a new Breath of Fire game in the future due to the demand for it, but they're going to take their time and make it a really special one
Source:
http://bioniccommando.com/en/podcasts
Scroll down to Top Secret File 004: Hironobu Takeshita, Producer 'Zack and Wiki'
skip to 29 minutes for the breath of fire bit
sorry if this is old news, I didnt see anything about it in the last few months of topics