In a report from USGamer, Square Enix has confirmed that their in-house studio, Studio Istolia, has been officially closed down. The studio was founded by Tales Of series producer Hideo Baba as early as 2017.
However, after a showing of the in-development title Project Prelude Rune in 2018, Baba eventually parted ways last December with the very studio he started – and Square Enix altogether this passed March. While that only painted bad signs for what was to follow, Square Enix had also taken down all media related to the fantasy RPG.
“Following evaluation of various aspects of Project Prelude Rune, development of the title has been canceled(…)Studio Istolia is no longer in operation and we have been taking appropriate steps to assign studio staff to other projects within the Square Enix Group.” – Square Enix
As quoted in the text above, Project Prelude Rune and its studio are now both nixed. However, Square Enix did deem it necessary to follow up by stating that they’re taking the steps to allow former Studio Istolia staff to work on other in-company projects for Square Enix.
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Source: USGamer
A Nintendo Switch trailer was also released.
According to SteamDB.
An announcement trailer was also released.