"Our team had a clear vision for this game ā one that we shared with all of you with much shared excitement ā 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...

I'm glad the silence has been temporarily broken after so long. Initially I feel optimistic about it and can wait for a really good game, at least that's my hope of the product. I look forward to seeing more news ahead. Thanks for sharing!
Reading more into the replies on that post is interesting. The developer perspective is obviously real and most often invisible to gamers. In recent years, since playing Terraria and Ark, I've been paying more attention to game development news, particularly with these two games ("Terraria" includes Otherworld). It's fascinating what I've learned and experienced over the years and yet I obviously can only see a small fraction of what's going on.
We mentioned before that we're not too impatient for Otherworld, although we eagerly eat up anything Terraria. It was exciting to first find out about it and have that hope of seeing it "soon" two years ago.
I'm glad when developers fill us in on what's going on "behind the scenes." I was disappointed for the "radio silence," but I didn't get frustrated. Although we now don't have a timetable for the game's release, we at least know that Re-logic is working hard to make sure this game meets what seems to be extremely high standards, which should produce a very good game. So, I'm hopeful and optimistic, maybe even more so now that I know what's been going on and it's not a dead project.
I haven't really played many tower defense games. I remember that quest at Fort Condor (I think that's it's name) in Final Fantasy VII. I wasn't too fond of it. Later, I found a Final Fantasy game on the Wii that was a tower defense game (I don't recall it's name). It was free or a demo, but I didn't spend much time with it nor did I find it too interesting.
So, I'm a bit reluctant regarding the tower defense aspect of Otherworld, however, I think Re-logic could perhaps do something amazing with it. That kind of mechanic does seem to fit well into Terraria as you're trying to protect your NPCs from the Blood Moon and such. In Terraria, we build arenas for this, so the tower defense aspect is already there.
Hopefully we'll see more development news in the next few months, though it doesn't look like we'll see the game this year (and I'm ok with that).
TOW's budget is apparently over $4 million. Check out ChippyGaming's new video: https://youtu.be/8MupkdeRlK0