Terraria: Otherworld has been cancelled by Re-Logic Games after more than three years in development.
Otherworld -- a spin-off from the studio's 2011 debut title Terraria -- has been axed following a status review of the game which revealed it was well behind expectations.
"Our team has a clear vision for this game... in spite of all of our efforts, the current state of the game remains equal parts far from that vision and beyond behind schedule from our initial planning," said the developer in a blog post.
From there, the developer decided that reimagining the game was not a viable option, and that such time consuming work would interfere with other ongoing projects.
Re-Logic added: "Come whatever may, quality is simply not something we are willing to compromise on to make a quick buck."
Following the decision, Re-Logic lamented having shared the game with fans so early into production, saying it will "fully own that error in judgement".
Parts of project had been outsourced to Re-Logic's partners at 505 Games and Pipeline Games, a move the developer said it should have given more consideration.
"Trying to outsource development of such a critical title for our company - even if just in part - was not the way to go," said Re-Logic.
"Moving ahead, our focus for the core development of new/future titles will be more inward and will seek to utilise our own people. We will share more information there just as soon as we have it."
The partnership with 505 and Pipeline will continue as the teams refocus on console and mobile.