Well the simple answer is they were kicked off Patreon. They had numerous projects in development, including a game (as it was the 25k milestone). Once the rug was pulled, they elected to put everything into the game and make it a bigger project. It doubled as establishing their own IP and providing experience with using Unreal Engine, which is what any future film will be made in. So ideally they’ll be porting the models from their old works to there, and it’ll come out much better than the SFM days.
That being said, with Nintendo being super lawyer happy the last few years, they’d have to be subtle about that project whenever they get to it. Likely releasing it without their trademarks like they did for the Zelda short.
