Pretty incorrect, so just gonna fix the timeline. Back in Patreon there was a milestone goal to make a game (around 25k if memory serves), they initially played around with Unity but found it wouldn't work for them. They went to Unreal Engine 4 instead, playing around with that while DC and Moneyshot (boss and lead animator) wrapped up work on Kunoichi 3. Then they hit around 35k goal (which would've gotten us a FOW-chan movie) when the axe came down and they were booted off Patreon. A few months went by, during which they set up their discord, and kept their staff paid via a rainy day fund. Then in March of 2019 they announced the Kickstarter for Subverse.
Yes their movie content stopped, but they have every intention of making them again, cept not in the aging old playground of SFM.
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Subverse serves two purposes, getting their team more used to the engine, and doubling as their own original IP, which is a good fallback should the issues that plagued them during their SFM era ever rear their head again.
) . So they're likely waiting in the backlog of films after the game is done. On the flipside, we get to see Kunoichi films done in UE4 in the future 
