Hi Steam! We missed out on making announcements here, so let's make up for lost time. We're still kicking and have some updates! Long story short: we're releasing a bigger, better demo soon (July 28th), and we're making cutscenes for the full game, which we'll need all sorts of different talents to help with. Sign up here to help with cutscenes[docs.google.com], or help us spread the word!
More details below:

The full game is going to take some time. All games do. Since we don't want to keep you waiting forever, and since we have our collabers making awesome games 24/7, we're going to release an updated demo to the game. The update includes over 20 new games (that's double the content of the current demo) AND we'll continue to update it with new microgames as we finish them. Expect the new demo to launch July 28th as part of Redditaisai at http://reddit.com/r/touhou, the same online event our first demo released!

If you want to see the new microgames alongside new characters, stages, and story, just wait for our full release! Like any good microgame collection, the game will have story stages tied to different Touhou characters, each with their own cutscenes and storyline. Now you can finally see what the rest of Gensokyo is up to while Nitori is busy making games and scheming.
Since this is such a big goal for a free fan project and will take some considerable effort, our current plan is to get a handful of stages done at a time and create a few episodic releases, eventually forming an entire game and telling the whole story.

Our biggest new challenge for the full game is making the cutscenes for each character's stage: each story stage will have an intro and outro cutscene, as well as unique stage animations for the gameplay. While we have very talented people on board already, our time is limited, and we'll need some more manpower to actualize this. Our animation style is very simple, and mostly involves drawing body parts and moving them around.
Learn more about the animation process here[imgur.com].
If you have an interest in planning, drawing, animating, or making audio for cutscene animations, sign up[docs.google.com] and you can work alongside other talented people to make it happen!

We really can't tell, not until we're super ready to know when. But we have no plans to charge for the full game, and we want to make some quality microgaming content for you to play. If you're excited to see the final game, consider helping us make it: The collab is always open.[github.com]
Also, if you signed up for the collab already and haven't heard from us, we're probably still making our way to you, but feel free to contact us.

That's all we have to update with right now. The year since our demo release has moved by so fast, so we hope to get going and make some serious dents over the next year.
Happy microgaming!