Complex sentence: An action game called The Eye of Argonia was actually planned but then cancelled for the more ambitious RPG, Morrowind-like the Eye of Argonia story, the unproduced game has become a running joke in Elder Scrolls games.
Split into simpler sentences: An action game titled The Eye of Argonia was planned for the more ambitious RPG, Morrowind, but canceled. Like the Eye of Argonia story, the unproduced game has become a running joke in Elder Scrolls games.