Nier developer Cavia was working on a team-based shooter RPG, entitled Catacombs, for Square Enix before the studio was dissolved a couple years ago. Siliconera has a wealth of information about the canceled game from an inside source, who was working on the project before its reported demise.
Catacombs sounds like it was a mix of team-based shooters like Left 4 Dead, mixed with the loot-whoring of Borderlands, and Diablo's randomly generated maps. Players would have guns, spells and magic rings to level up as they attempted to reach the elevator on each floor and escape to the surface.
According to the source, Square Enix planned to reveal the game at last year's E3, but that clearly never happened. The source claims Catacombs was far along and playable, but is unsure whether Square Enix will complete the title.