No, it doesn't mean they're starting over from scratch.
Gamers everywhere were concerned when developer Ninja Theory ( Heavenly Sword , Enslaved: Odyssey to the West ) talked about "starting Hellblade production afresh." If you haven't been following along, Hellblade is the team's promising new project.
You can see the now-deleted post at NeoGAF , where Ninja Theory says they've "retired" a vertical slice of the game that was recently shown off to the media. Then, after talking about starting "afresh," everyone had questions. But thankfully, Ninja Theory clarified – first to GameSpot and then on Twitter – that the game is still on track.
They "absolutely" plan to finish the current build before 2017 and added:
"Retiring our vertical slice and moving on into production is good news. [Development] is not starting again, it is moving forward as expected."
Hellblade will now push through full production, followed up by a polishing and balancing phase. And yes, the promising PlayStation 4 title is still on track for a 2016 launch. If you missed it, check out the extended gameplay cut that raised plenty of eyebrows.
Related Game(s): Hellblade