Its real and recently (although pre Sony epic fail) they said the layoffs were to stop messing around with tons of little games and to focus on their two big IPs (EQ and Planetside). So sounds like both got a lot more devs from moving around people during the layoffs.
We have even seen two in game screens making me think the engine is already done or close to it.
https://picasaweb.google.com/TroyCro...35680919942258
Pics 11 and 12 are in game. Rest in concept. I honestly like their new style for the game. Oasis concept looks great.