A group of former Irrational Games employees, including Ken Levine, have re-emerged under the name Ghost Story Games. Irrational were wound up by Take-Two in 2014, but some of the former staff remained in the publisher’s employment and continued to operate certain aspects like the Irrational twitter account.
Levine, in a message about Irrational’s closure released back in 2014, said he would continue at Take-Two, but would be making games for a digital release with a smaller team. Ghost Story Games would appear to be that smaller team, presumably having operated within Take-Two for the last few years.
According to the studio’s own FAQ: “The studio was founded by a group of former Irrational Games developers, such as creative director Ken Levine, art director Shawn Robertson, executive producer Don Roy and more. We’ve been concepting, prototyping and experimenting on a new game for some time now.” This game is likely to contain whatever conceptual blocks remain from Ken Levine’s GDC talk in 2014 (you can see the video of that below).
Ghost Story describe their project (again, in the FAQ) as “a new immersive sci-fi game with RPG elements”. They state, emphatically, that they are not working on a BioShock game. In terms of when we’ll hear about what they are doing, the FAQ suggests “Likely not for a while”.