So when does ffxv come out

[Khyra]

It looks terrible IMO. It's a shame we'll never see another old skool medieval or steam punkish style fantasy RPG again.

Bravely Default, which came out this year from Square, is an old-school medieval fantasy RPG. And its awesome! If you have a 3DS you should check it out.
And they're making another one.

So they do have a group making traditional RPGs, they're just targeting 3DS instead.