This is some very early footage of Irkalla, "an intensive tactic arcade shooter game with demons, mages, spells, mechs and high tech weapons."
Being a small indie project, they have got big plans, eventually wanting to "tell a deep story focusing on adventure/exploration Metroidvania-style", but for now, just so they can get something out the door, Irkalla is going to be something that focuses on "funny gameplay, heavy atmosphere and stylised pixel art".
Speaking of art, it's great, no? Smart design, with the backgrounds not just setting the mood, but helping the bright units stand out against it as well.
You can keep up with the project over on its TIGSource forum page.