When Swedish developer GRIN went belly up a few months ago, it was revealed that the company was working on a game called Fortress for Square Enix. According to some sources it was actually a Final Fantasy spin-off and now anonymous sources have told Gamesindustry.biz that the game is still being worked on by Square Enix. The same sources claim that Fortress was one of the main reasons why GRIN couldn't stay in business, as Square Enix pulled the game from their hands after only six months in development after getting cold feet and worries about the game's ultimate quality.
If this is true or not remains to be seen, as usual in the gaming industry.