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Mr Khan said:

Huh, you're right, Sony just cut ties with them. They did found the studio, however (per wiki). Supposedly in April of last year it was revealed that they were working on a new IP though.

But that Sony left the studio out to die surely indicates that they don't have much in the way of confidence in that IP.

Or the studio, maybe. The idea is a good one, but it was pretty poorly executed.

My understanding is that Sony never owned them to begin with, they just got them up and running.