The latest from the Firewatch team is indefinitely postponed.
In the Valley of Gods

Way back in the year 2017, Firewatch developer Campo Santo announced a new titled called In the Valley of Gods. At the time, we never knew it but the first reveal of the game could also have been the last look we may ever get.

In the Valley of Gods was going to be a first-person adventure set in Egypt. Just about five months after the announcement, came word that Campo Santo was acquired by Valve. In the months and years that followed, Campo Santo developers that had joined Valve started to quietly remove any mention of their involvement of In the Valley of Gods from their Twitter bios. This obviously led many to believe that the game was on hold or just outright cancelled.

Around the time when Half-Life: Alyx was announced, a few Campo Santo devs spoke up on social media. They confirmed to their fans that while they were helping out with Half-Life: Alyx, they were still also working on In the Valley of Gods.

Unfortunately for everyone, word came today from Campo Santo co-founder Jake Rodkin that "In the Valley of Gods development is on hold." The game isn't cancelled fully, but I wouldn't exactly expect to see the game any time soon.

This confirmation of the "on hold" status was provided to Polygon earlier today.

In addition to still working on Half-Life: Alyx, the team is also helping with development of Dota Underlords, Steam development, and other undisclosed Valve projects.

"To fans looking forward to In the Valley of Gods, it’s probably clear that the optimistic “2019” at the end of the announcement trailer isn’t going to be accurate. In the end, Valve Time makes fools of us all. But yes, developers from the former Campo Santo team have joined other projects at Valve, including Half-Life: Alyx. As you can imagine, our experience in the first-person adventure genre is pretty relevant. You hear a lot about how at Valve you can work on what you want. It turns out that’s true, and there’s a lot of work available. As we integrated ourselves into Valve it became clear there was a lot of valuable work to be done on Half-Life: Alyx. Some of us starting lending a hand, and have since become full-time on the project as it approaches launch. Similarly, some ex-Campos are working on Dota Underlords, some are on Steam, and so on. So to answer your question as of today, In the Valley of Gods development is on hold—but it certainly feels like a project people can and may return to. And when that happens, we’ll find an exciting way to let fans know."
This is something that many of us suspected to be the case, but it's no less disappointing to hear. I hope to see more about In the Valley of Gods sooner rather than later. Until then, I suggest you check out Campo Santo's previous release, Firewatch, for the PC, Switch, PS4, or XB1. It's a really great game and it's only about $20.