It seems like far more recently than
February of 2017 that Square Enix announced the creation of their new development shop Studio Istolia, but the timestamps don't lie. We haven't heard much about the new studio or its first project, "Project Prelude Rune," in the intervening time, but this week there was finally an update to the company's official website.
The update consisted of a new piece of concept art, showing a village perched above a lake in a soft-focused, dreamlike forest setting, but also a number of job openings for their Tokyo office. The jobs are fairly typical for a game development project, including concept art, technical art, map designers, user interface designers, planners and programmers, but the list does imply that the company is not planning on shifting workers from other studios to this new one and is instead mainly aiming for outside hires.
There's still no news about what Prelude Rune might be in terms of a game genre, or when or on what platforms we might see it. But that's not surprising given that they are still clearly ramping up the team's headcount. More news is sure to follow, though I would have to assume that it won't be this calendar year.
Source:
Gematsu