It's a bit disappointing given that they
"recently" handed the project to a new partner, but I absolutely get why they terminated development for
Terraria: Otherworld. And it's not a total loss for us either. To quote the
official forum thread:
* Re-Logic has possession of the game (design, code, art, sounds, etc.) as it exists today, and there are still a ton of amazing ideas under the hood here – many of which have never been publicly shared. These are ideas that we have not and will not forget and that you will very likely see implemented in our future titles.
* Active development of Terraria continues - 1.3.6 is still very much in active development. We know that we have not shared a lot in the way of spoilers there – but rest assured that the team has been working tirelessly on our next PC wave.