The Backspace design document describes "simple time travel" and combat similar to Skyrim, "but slightly faster since there is no concept of blocking." It calls for a game that is a mixture between Mass Effect, Borderlands and System Shock 2. Players would navigate between various worlds, linked together by one massive space station.
"Backspace was a project concept that we neither cancelled nor greenlit," Urquhart told Kotaku. "We had some great people work on the idea for Backspace for a bit of time and then moved them off to other projects as opportunities came up. We've been around for ten years now and have had a bunch of great ideas that we still have sitting around that we may be able to return to in the future."
Obsidian Entertainment has a lot of irons in the fire at the moment, including South Park: The Stick of Truth for publisher Ubisoft and Project Eternity, a Kickstarter campaign that yielded $3.9 million for the development studio to create a PC-only isometric dungeon crawler similar to Baldur's Gate.