Campo Santo developers that became part of Valve last year also took In The Valley Of Gods With them and while the game was set to be released in 2019 but it does not look like that is going to happen.
Since its announcement, two years ago, things have been pretty quiet. Some poeple have also pointed out that In the Valley of Gods was also removed from some of the profiles of the developers.
With the new Half-Life: Alyx now announce, many people believe that the developer might have put the game aside to focus on the new Half-Life VR game. The developer has also added that a lot of the Campo Santo has become full-time developers on the Half-Life: Alyx game as the game comes closer to its launch date.
Others also worked on the Dota Underlords game with a few more working on Steam. According to Jake Rodkin, the In the Valley of Gods is on hold on but did also suggest that they could return to the title at any time.