I'll just lay this out and that will be that.
I heard two sets of rumors, months ago. They had to do with the same 3 games.
Set 1:
Final Fantasy Versus was turning into FFXV, sony was trying to get it as an exclusive.
Kingdom Hearts 3 was coming, sony was trying to get it as an exclusive.
Miyazaki and a team from FROM Software were working on a new IP, a spiritual successor to Demon's Souls.
Online play going behind PS+
Set 2:
FF versus was turning into FFXV, sony was helping develop it, PS4 exclusive.
KH3 was coming, PS4 exclusive.
From making Demon's Souls 2.
Online play remaining free
So, obviously, Set 2 is a bit more than half wrong. Versus did become XV, but it wasn't developed by Sony and isn't exclusive. KH3 is coming, not PS4 exclusive. Online play isn't free.
So that leaves Demon's Souls 2. Given the difference between these two sources I'm going to personally believe the rumor in set one, not set two. But, that said, a name is a pretty easy thing to change. They could easily have begun as Demon's Souls 2 and changed the name to something new... or vice-versa, to give the game a higher profile when it's announced. But one thing seems certain in these dueling rumors... Miyazaki and a team at FROM are making something that is either Demon's Souls 2 or something that is very much like it.
I don't know any of this to be fact. I don't know anyone at FROM. I don't know anyone at Sony working with them. This is just me aggregating two separate rumors that have passed through my end of the world. Which leads me to my prior post. What we know for certain is that Miyazaki isn't working on Dark Souls 2. There is a team inside FROM with an unannounced project.... and Miyazaki and Sony have been tight for three generations now.