Alten8 has told Eurogamer that Imagination is the Only Escape has not been blocked from release by Nintendo, contrary to reports.
"The status of this game is currently concept / pre-production at this point in time," a spokesperson for the publisher told us. Apparently discussions with Nintendo have not even begun.
"[Imagination is the Only Escape] is only in its early stages. No one has blocked it, and it has no definitive time scale for release," the spokesperson continued.
"Luc [Bernard] is doing most of the artwork for all his game creations and we have not even discussed [IITOE] with Nintendo as of yet - Luc made various blog releases about the game concept and theme that have been picked up by various writers and used extensively, but are based on a few early artwork screens.
"In general we try to allow anyone we work with to use their creative talents and see no reasons why new type and styles of games and film content should not be tried," concluded the spokesperson.
Luc Bernard is currently creating five other games for Alten8, with Eternity's Child the only one in full production. Incidentally this has been approved by Nintendo for release on WiiWare later this year.