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Shake It, Maybe: 3D Realms "Not Closed"


But they have dissolved the DNF dev team. Shacknews has the full statement.

Despite rumors and statements to the contrary, 3D Realms (3DR) has not closed and is not closing. 3DR retains ownership of the Duke Nukem franchise. Due to lack of funding, however, we are saddened to confirm that we let the Duke Nukem Forever (DNF) development team go on May 6th, while we regroup as a company. While 3DR is a much smaller studio now, we will continue to operate as a company and continue to license and co-create games based upon the Duke Nukem franchise.

Lots more through the link, complete with the response to Take 2's lawsuit.

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