If the rumors are true, it looks like we won't be seeing System Shock 3 anytime soon, as a new report suggest the team is no longer employed. A new report from Video Games Chronicle points to a post from an anonymous developer on RPGCodex. According to the post, the development team behind the game at OtherSide Entertainment is no longer employed. This goes with the news that there had been massive layoffs within the company back in December 2019. What's more, it appears the game has been shelved as everyone there is way behind in the development of other titles. Here's a brief quote from the thread.
The only reason I'm posting is because I saw so much confusion about the state of the company and the project I thought some first person information would be welcome. I never suggested we were halfway done, core systems are a great foundation for a game but most of the work is content development which we were critically behind in, both in real assets and in tool support for an efficient pipeline.
Was the failure of the project right? It's hard to say. If Starbreeze hadn't gone into crisis I think we would've delivered something interesting with some fresh and innovative gameplay, but a much smaller game than what people were expecting and inevitably disappointing for a sequel to such a beloved franchise.
Those high expectations drove a lot of expensive experimentation. We were a small team and knew we couldn't compete with current immersive sims in production quality and breadth, so we had to be creative and clever and weird. And we were on our way to make something unique and possibly fun, but probably not what the audience was hungry for.
it honestly doesn't surprise us that System Shock 3 has been put into development hell. After GDC 2019, the news about the game slowly got quieter, to the point where no one even knew what was for sure happening there. We'll see if these rumors knock loose some confirmations about what happened, but it appears we won't be seeing the game anytime soon.