Update (5/10): Former employees of 3D Realms have posted on their blogs some concept art and a video showing some footage of what appears to be Duke Nukem Forever. If you haven't had your dose of vaporware already, the word now is that a new willing developer will have to pick up the game where 3D Realms left off, in order for the project to see the light.
The rumor that developer 3D Realms along with the recently resurrected Apogee name, had been shut down first broke over at Shacknews yesterday. After a series of updates, a confirmation of the developer's demise was released by staff member Joe Siegler on the 3D Realms forum. Joe was the voice of Duke Nukem II's gruff star as well as the company's webmaster and forum moderator. The closure comes as a shock to fans and employees alike, and is cited to be the result of funding issues. Employees have already been let go.
3D Realms is most known for its creation of Duke Nukem and publishing Wolfenstein 3D, both of which made our nostalgic dip into FPS history. The studio had been developing the strongly anticipated next entry in the Duke franchise, Duke Nukem Forever, for over 12 years. Efforts to complete the game increased in 2007, which was evident by a teaser released late that year. A recent Tweet by CEO, George Broussard gave fans an inkling of hope: "Closing out a milestone this week. 71 more tasks to do and we started with probably 800-900. Been a good push. Next one starts Monday."
Apogee Software and Deep Silver have stated that despite the unfortunate and sudden turn of events, Frontline Games' upcoming handheld Duke Nukem Trilogy is unaffected. Take-Two Interactive, the slated publisher for Duke Nukem Forever, has released a statement saying that its arrangement with the studio did not include ongoing funds for development. Additionally, they claim to still have a hold on the publishing rights to Duke Nukem Forever.