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PlatinumGames want you to know that Babylon’s Fall is, quote, not "in danger." In fact, it's so not in danger that they announced a new 1.1.0 update to Babylon's Fall with a statement over on Twitter saying that they have "no plans to reduce the scale of development on Babylon's Fall."
There’s no official date set for the update yet, but you can read Platinum's full plans in a blog post. The update's split into two halves, with one focused on providing new content, and the other full of changes to try to improve the game based on player feedback. And I would imagine there's a lot of that to go through, based on how critical the reviews for Babylon's Fall were.