Update: Since this news has come to light, Nightdive Studios CEO Stephen Kick has said that Nightdive still owns the System Shock franchise and IP, which was licensed to OtherSide Entertainment to develop System Shock 3.
Since Nigtdive still owns the IP, it doesn't seem as though Tencent will be taking it over completely. The initial announcement from Otherside was rather vague, so, we'll see what else we can find out and hopefully, any confusion will be cleared up. In the meantime, we have changed the original title of this post around a bit to reflect what little information is available as of press time. (thanks, Gematsu).
Otherside Entertainment has announced Tencent will be taking over the System Shock franchise from the independent studio.
This means going forward, the team's current project System Shock 3 will be handled by Tencent.
"We are happy to announce that Tencent will be taking the System Shock franchise forward," reads the official statement.
"As a smaller Indie studio, it had been challenging for us to carry the project on our own. We believe Tencent’s deep capabilities and expertise as a leading game company will bring the franchise to new heights."
Last we heard, System Shock 3 was still in the works, as many members of the team were working from home due to COVID-19 . OtherSide had been a bit silent before then, after an apparent staff exodus from the Austin studio in February which saw key developers leave the studio.
System Shock 3 was first revealed in March 2019 during GDC.