Infinity Blade: Dungeons was first announced back in in March of 2012 by Epic Games as a demo game on the third generation iPad and people got really excited ones they saw the game. The game was handed over to Impossible Studios, a new division housing ex-employees of Big Huge Games, but trouble first appeared in October of last year when the game was delayed until 2013. Unfortunately Infinity Blade: Dungeons has been put on hold indefinitely, as Epic Games has decided to shut down Impossible Studios.

Epic Games founder Tim Sweeney announced the news this afternoon:

We’re closing Impossible Studios.

When former members of Big Huge Games approached Epic last year, we saw the opportunity to help a great group of people while putting them to work on a project that needed a team. It was a bold initiative and the Impossible folks made a gallant effort, but ultimately it wasn’t working out for Epic.

This means that Infinity Blade: Dungeons is now on hold as we figure out the future of the project.

Macrumors writes: “Epic Games is planning to give each Impossible Studios employee three months of severance pay and is offering the option to form a new company with the Impossible Studios name.“

Source [MacRumors]