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Well this Asian-looking Turn 10 guy (Chris something) mentioned in one of the fall 2018 Forza monthly streams that they now have the luxury of time, which they normally don't have. He also mentioned (and this was even earlier) that either nobody of the team was working on FM8, or that the entire team was still working on FM7, I forgot what it was.
But to me it is quite clear they will skip the 2019 holiday period with a new title. My guess is they wait 1 year to collide with the new XBox console lauch in 2020. And that right now they are shaping up FM7 to give it a lot of improvements in all sorts of areas, which will then become the base and foundation of FM8 as well. So technically, they are already working on FM8 as well, just using FM7 as a live service/testing platform.
Yeah, someone at Turn 10 straight-up said that they were still 100% focused on FM7 and hadn't even begun work on FM8 yet back in the summer I believe - a point at which you'd expect FM8 development to be in full swing, considering they only have two years to make them. It was carried by multiple large gaming media outlets, and Turn 10 never bothered with even a clarification.
I'm sure at least pre-production has started by now, but they are still testing and releasing huge updates for FM7 over a year later, such as the racing regulations update coming sometime in the near future. That screams to me, that they are trying to "fix" that game for the long haul, to get at least another year out of it.
When you further consider that new consoles are virtually guaranteed for 2020, it makes sense to give 2019 a miss and have a new "flagship" Forza game ready for 2020. This has the knock-on effect of also giving Playground an extra year to do something more revolutionary than evolutionary with Forza Horizon.
I also can't help but wonder if Microsoft worry about the idea of a seventh Forza game within a single console generation.