In a brief update on the official Epic Games site, founder Tim Sweeney has announced the dissolution of Impossible Studios. Formed a mere six months ago from members of the Big Huge Games team following the dissolution of 38 Studios, the plug has officially been pulled, with Sweeney commenting:
"It was a bold initiative and the Impossible folks made a gallant effort, but ultimately it wasn’t working out for Epic."
He goes on to add that the Impossible Studios employees will receive three months severance pay and will be allowed to form a new company with the same name and logo in the future.
The future of Infinity Blade: Dungeons is for now "on hold". The follow up to the 2010 iOS original was originally expected at the end of 2012 but for now is up in the air as Epic Games tries to "figure out the future of the project".