Square Enix confirmed with game news website US Gamer on Tuesday that it closed its Studio Istolia game development studio and canceled the studio's "Project Prelude Rune" RPG project, with staff now being reassigned to other Square Enix projects.
Square Enix explained that "following evaluation of various aspects of Project Prelude Rune, development of the title has been canceled."
Hideo Baba, the former head of Studio Istolia and producer of "Project Prelude Rune," resigned from Square Enix at the end of March, following his resignation as representative director at Studio Istolia alongside a change in management policies at the end of last December.
A trailer for the game revealed in September that the game was being developed with Unreal Engine for PlayStation 4. That trailer has now been removed. Square Enix unveiled the project when it established Studio Istolia with Baba as its head in February 2017.
Source: US Gamer (Eric Van Allen) via Gematsu