Sony asked Ready at Dawn to make a God of War game for the Vita, but the developer is busy with next-generation hardware.
Ready at Dawn CEO Ru Weerasuriya told GamesIndustry that the studio is working on a new IP for a new platform.
"It's taken us time to get there and we've wanted to do new IP, we've been working on it for a while, and we felt the time was right and it was just the perfect alignment of everything that was happening," he said.
"And I think the big thing for us was just that we took the decision early to just skip a generation. I know that most people would have jumped on the current generation. Most people ask us that, how do you go from a handheld to a next generation console? I think it's the right thing to do. Sometimes you've just got to make your bets and live by them."
Ready at Dawn made two God of War PSP games - Chains of Olympus and Ghost of Sparta - and reluctantly turned down the chance to make a Vita God of War game.
"It's an idea that was floated as far as what could happen on the Vita. And especially with a platform like that, we were enticed I think by the prospect of doing something on that platform, but it just didn't align with what we wanted, so I'm hoping that they do something on that because I definitely think that they should," Weerasuriya said.
The executive noted that the team is enthusiastic about the Vita and sometimes regrets its decision.
"I mean there is some stuff on there that just amazed me and made me almost want to go like, 'Wow, maybe we should have done this, maybe we should have split into two teams.' I don't know, but I think it's got a bright future. It just needs the content."