Square Enix is using Epic Games' Unreal Engine 3 to make a "massive, original action role-playing game", Japanese magazine Famitsu reports.
Dragon Quest 9 producer Ryutaro Ichimura is in charge of the project, which is developed internally at Square Enix and planned for launch on consoles. According to Andriasang, Square Enix is exploring next generation platforms. 35 people are working on the game.
Famitsu revealed illustrations and character art, said to suggest the game is targeting overseas markets. It is made clear it is not a Dragon Quest or a Final Fantasy game.
Apparently Ichimura travelled the world for the past two years and conducted user surveys to research art and gameplay direction for the game. Now, he's finalised the basics.
A formal announcement is expected this week.
Earlier this month Epic announced Square Enix had licensed Unreal Engine 3 to make multiple unannounced games.