Duke Nukem Forever developer 3D Realms has allegedly being forced to close, according to numerous online reports.
Sources at website Shacknews and others initially reported that the closure was due to "funding issues" and that staff had already been made redundant.
An update from Deep Silver, the publishing partner of external company Apogee, later stated that their businesses were unaffected and that development of the handheld version of Duke Nukem Trilogy was continuing.
In a tacit confirmation of the 3D Realms closure a representative stated: "Deep Silver and Apogee Software are not affected by the situation at 3D Realms."
Duke Nukem Forever was to have been published by Take-Two Interactive, who retain the publishing rights to the game. "We can confirm that our relationship with 3D Realms for Duke Nukem Forever was a publishing arrangement, which did not include ongoing funds for development of the title," said Take-Two vice president of communications Alan Lewis.
As of time of writing there has been no official confirmation of the closure from 3D Realms, although employee Joe Siegler has stated on the official forum that: "It's not a marketing thing. It's true. I have nothing further to say at this time."
Siegler had just taken part in a feature with website TechHotDish.com, which has subsequently pulled the second part of the interview. Commenting on the forum, Siegler indicated that as of Tuesday afternoon he was unaware of the impending closure.
3D Realms, originally a brand named of Apogee, was founded in 1987 and published a number of influential titles on both labels, including Commander Keen, Wolfenstein 3D, Terminal Velocity and Max Payne.
The company was most closely associated with the internally developed Duke Nukem series, with a string of hits on the PC and, to a lesser degree, consoles. The long delayed Duke Nukem Forever has proven extremely problematic for the company though, having first been announced in 1997.
As recently as January 2009 3D Realms co-founder George Broussard was still adamant that the game would be released, although little has ever been seen of the title in public.