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It says in an Gamespot artcle, OWI are not making games them selfs, so I don't think Fangus is in development anymore.
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No one has said Fangus has been cancelled. Seeing as the first announcement of the title was a mere few days before the press release of OWI's downsizing, it's more than likely Lorne already knew the fate of the company, and quite likely that Lorne is looking for an external developer to make the game.
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i just hope oddworld will make movies and games, with different stories.
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Oddworld Inhabitants aren't making anything except ideas any more. They're not even doing website updates. They now exist as a creative think tank, not developers or producers.
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Ooh, I'm not sure if I like the way that sounds. (with OWI not developing the games themselves.) You did see the way the Crash and Spyro games ended up after Naughty Dog and Insomniac stopped developing them, right? =/
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No, there's a massive difference here, and that's that Lorne and Sherry still have 100% ownership of the Oddworld franchise. They're leasing development of their projects out to external teams, but they still retain creative control, whereas ND at least (I'm not familiar with the Spyro series) never even owned the franchise to begin with.