Campo Santo co-founder Jake Rodkin has confirmed that In the Valley of Gods is “on hold” as former Campo Santo developers are busy working on other projects at Valve including Half-Life: Alyx, among other games.
Campo Santo, best known for the game Firewatch, announced their follow-up game In the Valley of Gods at The Game Awards 2017. Four months later Valve announced it acquired Campo Santo.
Source: IGN.com In the Valley of Gods 'On Hold' As Campo Santo Devs Work on Other Valve Projects