Terraria: Otherworld has been cancelled. You can find additional information on the decision here: https://forums.terraria.org/index.php?threads/this-is-the-end-otherworld-development-cancelled.68594/page-2
Last year, we announced a partnership between Pipeworks and Re-Logic, a studio most famous for creating the wildly popular, creative sandbox game Terraria. That may have been the most important announcement in Pipeworks' history, but today's news might eclipse even that: Impressed by our work on Terraria, Re-Logic has chosen Pipeworks to develop Terraria: Otherworld!
"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," writes Re-Logic's Head of Business Strategy, Ted "Loki" Murphy.
"So, where does TOW head from here? The great news is that we already have a dedicated and passionate team ready to pick up the torch and continue the Otherworld journey! Based upon their really impressive work to-date with the Terraria re-write on Console/Mobile, coupled with an amazingly on-point proposal for completing Otherworld (after a thorough review of the game on their end), we have made the decision to bring Pipeworks on board as our new development partner for Terraria: Otherworld!"
While we can't say much about the game just yet, you can find more info on this announcement on the Terraria Community Forums.