All good things must come to an end, and so it is for us. It is time for each of us to move on from Squad. Kerbal Space Program is an incredible game and has truly been a joy to create. We have greatly enjoyed working together with such a tightly-knit, professional, and talented development team, and with such a wonderful community. Over the last update cycle we’ve taken KSP to new heights and achieved great things with such a small team. We’ve finished work on update 1.2 and when Squad releases it, it will be a product of which we can be truly proud. We hope you share that opinion and we hope you enjoy playing it as much as we loved creating it.
Thank you all for the incredible community support. So long, and thanks for all the snacks!
Signed, in no particular order, your Kerbal developers Mike (Mu), Bill (Taniwha), Nathanael (NathanKell), Sébastien (Sarbian), Jim (Romfarer), Brian (Arsonide), Chris (Porkjet), Nathan (Claw)
Despite this post, a subsequent statement on the official forums states that game is not dead and is likely a damage limitation exercise.
“We also want to thank our fantastic team of professionals, whose hard work, dedication and passion made this possible!
“But this is not all! Here at Squad we’re looking into the future and we have great and ambitious plans for the KSP franchise and even more!
“If you’ve been following us closely, you must be aware that we’re growing and we’ve been looking for talent and great collaborators that help us build the next milestone of this franchise. New talents have enrolled in the past few months and they are just as excited as we are. Bringing new talents is allowing us to bring fresh ideas to the plate and we can’t be more excited for what’s coming
“There’s an important amount of new content, besides this new update, that we’re currently working on. This includes more free updates, full expansion packs with an incredible amount of new content and much more!”
The continual use of the word “more” and the fact they have been “looking for new talent” indicates they need a new team on this to keep updates coming. For now, a large chunk of the KSP team has walked.