Looks like it all went South and rumour is Sony dropped their support:

Can't be surprised that Sony dropped this honestly. How long ago did they first reveal the game? 2 years and 6 months?

damn, I hope that's not as bad a sign for the game as it sounds, it looked really good :/

What does it mean that it reacquired the rights to its game?
How do you lose the rights to your game? did they sell it to someone else?

This was the game that kinda looked like Wind Waker right? hope its still doing well.

they had a contract with Sony that gave Sony the IP rights and Tequilla funding for X years to complete the game and probably boni based on success/ratings

Let´s hope for the best!
However Sony giving up ownership of the IP along with the fact that we haven´t seen anything new in over 2 years doesn´t instill me with confidence.

If they are dropped then I hope they manage to find other options to keep the game alive.

fuck. i really wanted this game and this is a bad sign.

Obviously they were dropped by Sony because they weren't delivering on their promises, and now they've regained ownership of the IP in order to persue the project solo.

That really sucks /: this game looked promising. Hopefully they can see development through to completion via other sources of funding.