Edit: Project canned, they are now working on a PSN/Vita project after helping on Halo: Combat Evolved Anniversary.
Do you remember Armature Studio? It was founded by former Retro Studios leads Todd Keller, Mark Pacini, and Jack Matthews in early 2008 when they were lured by EA. On a sidenote, the whole story was just like what happened at Infinity Ward/Respawn, just exchange some names and you have it. That's why Surfergirl said that those three guys were "escorted out the door on Friday the 18th [April 2008]". The only difference was that Nintendo didn't sue them but cancel their project - this was the start of DKC Returns.
Back to topic, the EA deal fell through just like the entire Blueprint division. Armature did some PS3, Xbox 360 and Wii prototypes in the meantime. As of early 2010 they are working on a project together with Capcom Japan, while "specializing in console/downloadable games for XBox 360 and PS3, and handheld games for the 3DS and PSP2".
Let's see whether we'll get more information soon.