Back in June 2012 Epic Games announced that the company would take on the former employees of Big Huge Games, the developer that went out of business after the publisher behind the company, 38 Studios, went bust due to owing millions to banks and the State of Rhode Island. These new recruits were hired under the name Impossible Studios.
However, Epic has now announced that Impossible Studios will be closed due to the partnership not working out, though the reasons for that remain unknown. This closure has directly affected development on Infinity Blade: Dungeons, which has been put on hold while Epic decide how to move forward with the project.
It does look like that the parting of ways has been diplomatic with Epic offering those who are losing their jobs three months severance pay, and all the rights to the Impossible Studios name so the team can continue independently if they wish.
I do hope that those affected do manage to find their feet, having gone through incredibly bad times with 38 Studios, and not being able to mesh with Epic. Kingdoms Of Amalur: Reckoning was a decent RPG, which shows that these guys do have talent.
Whether they’ll stay together and try to pursue a future with the Impossible Studios name remains to be seen.