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Studio Istolia has been closed down following the cancelation of the project the Square Enix-founded studio had in the works.
Square Enix confirmed as much to USGamer, noting that it is “taking appropriate steps to assign studio staff to other projects within the Square Enix Group” following the studio’s closure.
Studio Istolia itself opened its doors in 2017 under former Tales of producer Hideo Baba, though Baba departed both Istolia and Square Enix last month "to make room for the next generation."
The studio’s goal had been to create new properties in partnership with Square Enix, and the now-canceled fantasy RPG Project Prelude Rune was to be its first project.