Luminous Productions, the development team behind Forspoken, will merge with publisher Square Enix on the 1st May. The Japanese outfit was already a subsidiary of Square Enix, so this essentially means that it'll no longer exist as its own studio. Instead, we assume that most of its employees will be moved to various parts of the parent company.
The core of Luminous Productions was initially made up of developers who worked on Final Fantasy XV, with the studio being officially established in 2018. Its overall purpose was to create new, big budget properties using Square Enix's Luminous Engine.
Forspoken was the company's first attempt, but it's fair to say that things didn't go especially well. The project had a somewhat troubled development cycle, complete with multiple delays, and when it did eventually release earlier this year, it was met with lukewarm reviews, and it divided player opinion.
We don't know for sure if this spells the end for the Luminous Engine, but we wouldn't be surprised to see the publisher cut its losses.
As for Forspoken, Luminous Productions says that it's still committed to the action RPG for the time being. A seemingly large update is still in the works — which aims to improve technical performance — and the title's 'In Tanta We Trust' DLC is promised for a summer launch.