A Message from Tim Sweeney on the Epic Games Community Website announces Epic is closing Impossible Studios (thanks nin via Kotaku), the developer they formed just six months ago with staff from Big Huge Games, which went under as part of the bankruptcy of 38 Studios. The Epic Games founder explains "it wasn’t working out," and as a result, the iPad game Infinity Blade: Dungeons is now on hold. Here's word:

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.

In addition to providing Impossible Studios employees with 3 months of severance pay, we’ll be giving the team the opportunity to form a new company with the Impossible Studios name and the awesome Impossibear logo.

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