PlayStation All-Stars Battle Royale developer SuperBot Entertainment is punching together a new intellectual property, according to the studio’s director of operations David Yang. In a statement issued to EDGE, the company admitted that it has “substantially shrunk” since it ended its relationship with platform holder Sony, but that it continues to exist in a smaller guise.

The Californian outfit constructed PlayStation All-Stars Battle Royale in partnership with Sony Santa Monica, but was cut loose in February after it became apparent that the mascot mash-up had not sold as well as expected. After a slew of layoffs, some rumours suggested that the company had been closed, but according to Yang, that was never the case.

“We have substantially shrunk down our operations but are still going strong while we work on a new IP,” he told the website.

There’s no word on which platforms the studio is currently coveting, but given the trajectory of the industry at the moment, we wouldn’t be surprised if it was targeting smartphones. We recently pondered what went wrong with PlayStation All-Stars Battle Royale, after the title’s strong critical reception led to some scandalously low sales numbers.