Back in 2008, Square Enix formed a development studio in Los Angeles. Fumiaki Shiraishi, creator of Final Fantasy Crystal Chronicles: My Life as a King, was given the task of leading the group.
No games have been released since its formation, but the LA Studio was working on a game called Project Dropship. While this leaked concept art shows a ship, the game was actually a top down shooter. Imagine something similar to Alien Breed Evolution, but with a steampunk meets space western flair.
Project Dropship was in development for PlayStation 3 and Xbox 360 and Square Enix planned to release it as a digital download for both platforms.
< Update: The screenshots were removed at Square Enix’s request. >