It's no secret that Paul and I are struggling to get this update out, and nobody is less happy with the situation than us.
By far the largest problem is the complexity of the net code. Since we started the 3D update, we transitioned across to an open world streamed world, and keeping tens of thousands of objects synced between computers, each with their own unique properties and state, has been a major challenge.
The streaming world has required many months of performance optimizations, but it works decently. The multiplayer has had a similar time investment, and it's not even clear how much more time will be required.
In the interests of getting the game out, we've decided to shelve the feature for now. It's clear that we need to hire a dedicated programmer to work on it, and that's both financially a problem, and doing so right now would delay the project even further.
The hooks are staying in the code, so we can revisit it at a later date.
Single computer couch multiplayer, of course, will work just as before; the game plays great on the couch with some Xbox controllers.
We're also opening up our Trello workspace, so you can see our day to day progress, and Paul's going to write a post on what still is required with a link to the Trello ( http://steamcommunity.com/app/227720/discussions/0/619574421252940000/
< Link to Trello ).