Firewalk is in a very precarious position.
1.) Making a different game would be a lot of time and money for a second chance at rolling the dice. Even if they miraculously get a game out in like 4 years, that'd end up being like 1 game in a decade, (depending on how you count that timeline.) And their biggest claim to fame is making one of the biggest AAA failures. It's not like ND, where they can just throw up their logo and people are interested.
2.) Supporting another studio doesn't feel likely. Firewalk is in one of the most expensive areas of any studio. I think only Naughty Dog is in a more expensive area. The cost per person is very high.
3.) Shutting down the studio seems like the most likely path, and that's incredibly unfortunate.