short answer:
Don't hold your breath... Still I think they are in development, just is like their hobby, so they just do it if the feel in the mood, and anyway I'm grateful for what they already provided. The last word is they are working in the much better 1.4 version, which indeed, I have played with it, and is almost there! So it could come on summer, or it could not. You never know
long answer:
I "know" (not actually
) them(one of them) since almost the beguining. He (if is one only person, I never knew) made it imho in the start as tool for internal use for his game team. I think he didn't have big plans on it... Just seems the team needed weights and some other features not in Milkshape (imho they all loved, and love, Milkshape, also. They made it as a companion ) I remember for those times (years ago) I was near to get into their game team. I doubt they make games now...
As I see it, they provided by a bargain price an outstanding, small, easy and handy tool for animation. Indeed, only thing I strongly miss from Character Studio 4.1 is planted key (being able to glue a joint to world space while all the other bones will rotate as if it were a new root, till the frame is put OFF) But that's a feature that you don't find either in much more ambitious (cfx pretends only to do character real time animation; I prefer tools that excell in an area, I use one for each (wings3d, ultimate unwrap..)) 3d tools, free ones, and not even in expensive ones.An exception:I purchased Truspace 4(there's a free x exporter;but the thing finally didn't work..) and has bone locking (similar but worse, as it lock a full bone, not just a joint) , or in ts language: the nail. (still you can't set the strenght of a vertex like in CFX...and I like the cfx keyframer and bone handling more) Surely a kickass animation software is Hash Animation Master, specially if you also purchase the AMtex plugin, a very good (I tested with a Hash user and Ultimate unwrap x import) x exporter plugin. Still, that'd mean to buy it too.. 20$+Hash ANimation master (299$) A purchase I may consider at some moment..
Blender is getting there, but...neither joint pinning;the x export is almost done.(already exports well static x files) yet most users don't get the hang of it.
to your question, what I already said in the sort answer. I "suspect" they are developing, slowly and as you'd do your hobby, the 1.4 version. I can't know, anyway, lost contact long time ago (life, etc)
Actually, is the only tool to make x files witha decent quality(weights) bellow 100$. And is very easy...
