David Jaffe is an eccentric genius, but he is a genius nonetheless- his credits include Twisted Metal, as well as the original God of War. So you always want to keep an eye on what he might be working on next- however, whatever it was that he was working on seems to have been canceled, in turn leading to layoffs at his studio, The Bartlet Jones Supernatural Detective Agency.
Jaffe confirmed both, the cancelation of the unannounced project and the layoffs, on his Twitter, stating that more news would come, but that he wanted people to learn about this from him rather than from unsubstantiated reports or leaks. As for what the game itself was, we don’t know- and now, we might not ever.
Jaffe’s previous game was the multiplayer shooter Drawn to Death, which launched on PS Plus last year to a tepid response, and ended up flailing and fading away.