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The important term here is "re-engineering". That means they're doing it over. Why would you re-engineer something? A) it's not good enough as-is, B) the original interface it was planned for has changed. Sounds like, to me, that they're switching platforms.

The second thing to note is the way Japan Studio works. Team size is not set and the studio isn't divided up by project. Rather, all games start with a small team and then other developers will join in as needed. It's not until a game nears release that the number of people balloons.

I can't wait until the game comes out so that we can hear the whole story.