Infinity Blade: Dungeons is on hold until its future is decided.
Impossible Studios, the developer formed under Epic Games and made up of former Big Huge Games employees, has been shut down. Epic founder Tim Sweeney announced the news earlier today, stating that although it was "a bold initiative and the Impossible folks made a gallant effort," it just "wasn't working out for Epic." The former employees of Impossible Games have been given three months' severance and the right to use the studio's name and logo if they want to reform.
Additionally, Infinity Blade: Dungeons, the follow-up to 2010 iOS hit Infinity Blade, has been placed on hold as Epic "figure[s] out the future of the project." Impossible Studios has been working on Dungeons since its formation last summer. At the time, Epic Games planned for Infinity Blade: Dungeons to be released by the end of 2012.
Impossible Games was formed in the wake of the 38 Studios debacle; Big Huge Games had been acquired by 38 Studios to make Kingdoms of Amalur: Reckoning, and shut down a few months after shipping the action RPG. It's a shame to see the developers without a studio once again; best of luck to those involved.