In an update on the Project Awakened site, Phosphor games thanks backers for their support, but says that "we need to put our funding endeavor on hold effective immediately," and that "everyone who pledged money will be receiving a full refund."
It's a shame, because the core idea behind the game was solid, and the tech demos Phosphor showed were pretty cool. (You can watch one above.) Phosphor's CEO Justin Corcoran promises that they haven't given up on the game entirely, telling Polygon that while the game is on hold for the time being, "Someday, somehow, we will make this game."
On their website, Phosphor mentions that "there have been some alternative funding options that have recently been presented to us, so please continue to keep an eye out on our Facebook page for future updates." Here's hoping that amounts to something; I'd love to see this game get made.