That meant the ITV competition would be filming live from four locations around the world simultaneously – but the ambitious dream has allegedly proved to difficult to turn into reality.
Instead the auditions will be pre-recorded as usual, and the hopefuls' reactions will be shown live from Wembley.
An insider told The Sun: "This a daily humiliating moment for the X Factor. They have been talking about the live Judges' Houses stage for months and now they are having to admit defeat.
"They were desperate to make this year's show bigger and better in an attempt to halt the ratings slide and they bit off more than they can chew."
Earlier this month it was revealed that the show is a million viewers down compared to last year – and Simon Cowell, the other judges and the presenters are said to have been given two weeks to save the show.
A source said: "Strictly has so far trounced The X Factor in the war for viewers. While it's off air for a two week break, bosses know this is their chance to boost popularity for X Factor.
"So they're keen to ensure all eyes are on the X Factor when Strictly returns. It's a total image haul, they all want to impress."