Yes, Final Fantasy XV is happening and Square Enix used the Tokyo Game Show to show off a work in progress of the game. The trailer shows off some combat with Noctis and his group of merry men as they ride around in a car and pull out their swords and guns against some monsters.
It's pretty action heavy and the game does look really well done. Of course, Square Enix isn't giving a time frame at all on the game, but a playable demo will become available for both the Xbox One and PlayStation 4 when Final Fantasy Type-0 HD is released next year