Epic Games has announced the closure of Impossible Studios, laying off the team that had most recently been working to release Infinity Blade Dungeons for iOS. "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," said Epic founder Tim Sweeney in a message on the company's website. "It was a bold initiative and the Impossible folks made a gallant effort, but ultimately it wasn’t working out for Epic." The publisher will give each newly-unemployed worker three months of severance pay and has agreed to let them keep the Impossible Studios brand if they'd like to continue game development efforts elsewhere.

Sadly, the decision appears to be a sudden one: tweets earlier this week from Impossible Studios employees including Sean Dunn, Ian Frazier, and Jessica Campbell reveal no hint of impending bad news.

As a result of the closure, Infinity Blade: Dungeons now faces something of a tenuous future. Epic says the title has been placed "on hold" as the company discusses a future for the project. If you'll remember, the game was first revealed during Apple's iPad 3 event early last year. Considering the healthy profits Infinity Blade has earned Epic, it's unlikely we'll be seeing it disappear altogether. But whether we'll ever see Dungeons reach the App Store remains an open-ended question for now.