The house that Abe built is still plucking along on their next title, in spite of recent turbulence...
It's expected soon that Oddworld Inhabitants' newest title (called Stranger, last time I checked) will be coming much closer to completion very soon. It is also believed that a publisher (perhaps Ubisoft or EA) will soon be announced for the title.
It's been a up and down year for Oddworld Inhabitants. Recently, Atari sold its 50 per cent share in the company back in return for publishing royalties. This came a few months after Microsoft ending its publishing relationship with Oddworld Inhabitants (which was in stark contrast to the money Microsoft paid OI to develop Oddworld: Munch's Oddysee as an Xbox exclusive launch title three years ago), which left OI in the publisher-less lurch that it's in right now. However, if Oddworld Inhabitants finds a publisher and manages to get Stranger out the door by the end of the year, it could be result in a turnaround that the company likely needs right now.
News source: GameDAILY