Siliconera - 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 the 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.