Update: Somol is part of OtherSide Boston, not the Austin-based team working on System Shock 3, so the fate of both the team and the sequel are still unknown. OtherSide still hasn't addressed the rumours from February that claimed development had been shut down.
Original story: After recent layoffs at OtherSide Entertainment put the future of their System Shock sequel in doubt, vice president of marketing and business development Walter Somol posted on their forum to say the following:
"We’re still here. We’re all working remotely right now, probably like most of you. Our new concept is coming along nicely and we are really excited about it. We have cool and we think distinctive art style for it and we have that and gameplay coming together in UE4. I know it’s a tease, but I just can’t really say anything about it at this point."
An anonymous post to the RPGCodex forum, supposedly from an employee of OtherSide Austin, previously claimed the Texas studio which was working on System Shock 3 had been shut down. Somol works at their Boston studio.
Nightdive, meanwhile, who are working on the remake of the original System Shock as well as an enhanced edition of its sequel, are also doing an enhanced remaster of Acclaim's comic book adaptation Shadow Man.