Chief Creative Officer Denis Dyack made the announcement in a post on the developer's official site.
It is with a heavy heart that we have decided to put the Shadow of the Eternals project on hold. We are very happy with what we have accomplished both as a group and with the community. The community has blown us away and was the one thing that kept us going through it all – we cannot thank you enough.
Many of us will be taking a break. For those who are not aware, we all worked on this project as a labor of love and self financed 100% of everything for a over a year to try to make Shadow of the Eternals a reality. Although we did not succeed on doing this, we succeeded in making many friends and starting something that we hope provided value for those involved. We have no regrets.
Denis, Phil and Aaron have decided to continue to run the forums for those who wish to stay hang out and talk. Denis, Phil and Aaron will also be taking a break but will be around posting and talking with everyone when they can. Others from Precursor will also be popping in from time to time.
Is the project dead? No, but we feel it needs a rest too. We have all agreed as a group that when and if the time is right we will get together and start it up again.
While the game shows promise, the studio, composed mainly of former Silicon Knights talent, simply hasn't managed to come up with the funding it needs to get the game off the ground. Considering the shady past of the Eternal Darkness developer, one can understand why the crowd funding campaign was unsuccessful.