Much to the disappointment of its fans, Re-Logic officially announced that Terraria: Otherworld has been officially cancelled for straying too far from the original idea, so they thought it much smarter to cut their losses and move on.
For a while Re-Logic seemed like it was going to pull a successful rescue mission, seeing as how they ditched Engine Software and enlisted Pipeworks to help assess the situation. What they found, however, was beyond repair, Re-Logic claim.
Developers posted a lengthy forum post, explaining that backtracking and patching up the game would simply cost too much time and money. Naturally, neither of which is a luxury Re-Logic can afford in their current predicament.
The company says that pulling the plug on Terraria: Otherworld was in no way easy. However, they think it's best "to be honest with ourselves and realize that Otherworld simply is never going to reach its potential in any sort of reasonable time or fashion."
Having said that, Re-Logic decided to insist on quality at any cost, even if it means abandoning development of Terraria: Otherworld altogether.
Re-Logic even listed everything they've learned while making Terraria: Otherworld, giving an interesting insight into how a company can stray from the right path.
The company thinks that rushing the gun with announcement was mistake number one, albeit we found the second one particularly interesting. Re-Logic claims that outsourcing a game of such importance for the company was a mistake, which they do not plan on repeating.
Most fans of Terraria: Otherworld seem to have taken the news rather well, despite the initial disappointment. Re-Logic's transparent handling of the matter was quite admirable as well, so it's no surprise.
The company has already set its sights on bigger things and with the fan base as devoted as this, this may even be a blessing in disguise.