Square Enix has announced the creation of a new development studio in Japan, Studio Istolia. Based in Tokyo, the new studio is being lead by Hideo Baba, longtime brand manager and producer of Bandai Namco's Tales series.

Square Enix also revealed that Studio Istolia is currently working on its debut project. Currently named Project Prelude Rune, the game is a fantasy RPG that is said to unfold on a "vast land teeming with life". Further details on the game are expected at a later date.