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Frostpunk creators cancel "Project 8" and lay off staff amid concerns that "narrative-driven, story-rich games" don't sell
(www.rockpapershotgun.com)
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The title is a bit missleading considering that the actual article mentions a lot other problems that plagued the development.
While there's still demand for "narrative-driven story-rich games" one should keep realistic expectations. For this genre I feel smaller scope and indie developers work much better.
I think it's probably true though. I pitched my game to them and they graciously responded and said they are looking into publishing narrative driven games but rather mechanically complex games.