Terraria: Otherworld is a spin-off of original exploration/survival game Terraria that was announced in February 2015. It has since lost its developer as publisher Re-Logic ditches them for the project being "well behind schedule."
The original developer, Engine Software, is a Dutch developer behind a number of Licensed games and handheld ports. Re-Logic has, however, stated its reasons for detaching Engine from the game being that, "the game is still equal parts far from [our] vision and well behind schedule."
"Re-Logic's focus has and always will be on delivering complete and quality game experiences to our fanbase," the publisher explained. "This means that we will not compromise game quality for speed to market or for any other reasons within our control. Our team had a clear vision for this game–one that we shared with all of you with much shared excitement–and, as much as we hate to say it (and in spite of all of the reforms we tried last year)–the current state of the game is still equal parts far from that vision and well behind schedule.
"As a result, we have made the decision to move on from having Engine Software continue development of Terraria: Otherworld. Re-Logic has possession of the game (code, art, sounds, etc.) as it exists today, and we have been examining the array of options available to us to get TOW to a place to where we can confidently deliver on the vision and expectations we all have for this game. After taking a good hard look at everything, we feel that a new and fresh start/direction is the only way Otherworld will ever reach its full potential at this point."
Re-Logic has not abandoned the game, however, as it has shifted development of Terraria: Otherworld to a new developer Pipeworks, who incidentally also worked on the console and mobile versions of Terraria
News from the studio is expected to be fairly quiet as Pipeworks gets acclimated, butboth the developer and publisher have expressed their enthusiasm for the project going forward.
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