One of the reps told me that management didn't like that game, and they erased it and started from scratch with a much funnier idea.  There is an avi demo for the "new" Planetfall II in the Masterpieces Collection, and
they're giving it a release date of January 1997.

Planetfall: The Untitled Game

Initial Online Post

There has been discussion recently in various newsgroups regarding a
Planetfall sequel. In an effort to promote peace, harmony, cooperation,
understanding, and a spirit of unversal love between all peoples of all
nations, globally, everywhere (certain exclusions apply), I am here to
announce a next generation sequel of Planetfall IS in the works. Look for
a 3D, real-time adventure game, a polygonal Floyd, and the spirit and
history of the original text-based adventures preserved.

I will try to post periodic updates. You are welcome to e-mail comments
and questions to me at the address shown in the header. Please
understand, I may not have time to personally respond to all mail due to
the huge volumes I receive daily given my almost-celebrity-like status in
a certain alt.milo.sputter  newsgroup. Note there are certain aspects of
the game I will *not* be able to discuss in rich detail. Look for future
postings as more information becomes available.

Milo Sputter
Team Planetfall

As they did with Return to Zork and Zork Nemesis, Activision are
once again delving into the Infocom archives. This time, however,
they're creating a sequel to Steve Meretsky's hilarious Planetfall
series, which began with Planetfall and Stationfall in the early
eighties.

This newest entry into the comedic sci-fi series, tentatively titled
Planetfall: The Other Side of Floyd, will pick up right where
Stationfall left off. For those of you who don't remember, our hero is
a janitor-turned-lieutenant in the Stellar Patrol of the Third Galactic
Union. With his robotic sidekick Floyd, he saved a dormant planet
in the first game and awoke a dormant race in the second. Sadly,
Floyd sacrificed his life in Stationfall, and thus you have your first
task in this newest adventure: put Floyd back together.

The story is a sci-fi epic, involving races and characters both old
and new. Through a clerical oversight, you are promoted from
Lieutenant to Hyperfleet Admiral. While welcoming a new planet
into the Union, Floyd's older brother, Lloyd, sabotages the
ceremony, causing both the planet and your fleet to be obliterated.
Lurking behind this act is an alien conspiracy to rid the galaxy of
humans, a conspiracy which you and Floyd must uncover and
destroy.

The new Planetfall will take an original approach to adventure
games, which the designers hope will push the envelope of the
genre. The three-dimensional environment will permit free-range
movement, going beyond the set paths and 360 degree nodes
found in Zork Nemesis. In this environment, characters will move
independently, coming up to you to speak and going about their
own business. And while neither of these elements is unique in its
own right (Under a Killing Moon featured a version of the former,
Dust the latter), together they could prove a truly revolutionary step
in adventure gaming.

Like MechWarrior 2 before it, this is not the first attempt at a
contemporary sequel to Planetfall, and the original design=97as well
as the original design team, which included Meretsky=97were
scrapped several months ago. Let's hope Planetfall proves, like
MechWarrior 2, to be worth the wait.

Planetfall is scheduled to be released for Windows 95 in early
1997.