Sony recently announced that they were pulling out of their collaboration with developer Tequila Works, and would no longer be publishing Rime, as well as ceasing all future funding.
Many therefore speculated that the project would be doomed, but that doesn't seem to be the case. Via a press release sent to GameSpot, Tequila Works PR Manager Jose Herraez confirmed that the game is still in development, and that the development team has expanded by around 40%.