Square Enix has officially confirmed that Project Prelude Rune by Hideo Baba has been cancelled. The PlayStation 4 role-playing game was in development at the newly formed Studio Istolia which has also been shut down following the departure of Baba-san. The team behind the game have been relocated to other studios within Square Enix.
Hideo Baba, known for his work on the Tales of series, is the second high profile director to leave Square Enix in a short period of time. Hajime Tabata, director of Final Fantasy XV and head of the newly formed Luminous Productions, also left the company and DLC projects for the game were cancelled. Luminous Productions are also working on a unannounced AAA game but the fate of it remains unknown.