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Update 3: 3D Realms webmaster Joe Siegler has commented on the shut down, stating: "It's not a marketing thing. It's true. I have nothing further to say at this time."

Siegler's post also reflects the unexpected nature of the situation, as he was unaware of the impending shut down during an interview conducted yesterday afternoon.

Update 2: Duke Nukem Forever publisher Take-Two has confirmed to Shacknews that it was not funding ongoing development of the 3D Realms project.

"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 VP of communications Alan Lewis in a prepared statement.

"In addition, Take-Two continues to retain the publishing rights to Duke Nukem Forever," he added.

Update: Apogee Software and Deep Silver have issued a statement to Shacknews, confirming that the situation at 3D Realms has not affected the development of Frontline Games' upcoming handheld Duke Nukem Trilogy.

"Deep Silver and Apogee Software are not affected by the situation at 3D Realms," a representative for the companies told us. "Development on the Duke Nukem Trilogy is continuing as planned."

Original story: A very reliable source close to Duke Nukem Forever developer 3D Realms today confirmed to Shacknews that the development studio has shut down.

The closure came about as a result of funding issues, our source explained, with the shut down said to affect both 3D Realms and the recently resurrected Apogee. Employees of both entities have already been let go.


Phone calls and e-mails to various 3D Realms veterans have thus far gone unanswered, with 3D Realms publishing partner Take-Two and Apogee partner Deep Silver likewise unavailable for comment. One 3D Realms spokesperson declined to comment when reached.

3D Realms was founded in 1987 by Scott Miller and George Broussard, and was best known for its Duke Nukem series of shooters starring the titular, bubblegum-lacking hero. The studio had infamously been working on Duke Nukem Forever, the next flagship franchise entry, for over 12 years.

A final push to release Duke Nukem Forever began in 2007, marked by a short teaser starring the in-game hero that was released late that year.

As recent as January 2009, company steward George Broussard wrote on his Twitter feed that he was visiting Take-Two to show off the title.

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So with 3D Realms ending last Friday, much of the insider info regarding the project is starting to leak out. From what we hear, publisher Take-2 Interactive offered $30 million to George Broussard in an effort to acquire the IP rights to the Duke Nukem franchise, although it is unclear if this includes the work that was already completed on Duke Nukem Forever.

Our sources tell us that Broussard turned down the offer to sell the franchise, and instead spoke with several other publishers, including id Software, Epic, Electronic Arts and even Microsoft in an effort to secure additional funding to complete the project.

From what we hear, Duke Nukem Forever is not completed, but we also hear Broussard is continuing to shop for money; but this could prove to be problematic, as Take-2 Interactive does still hold the publishing rights to the game.

As we said the other day, the future is unclear for the game. What we do know from our sources is that the last chapter may not have been written in the Duke Nukem Forever saga.

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The 12-year-long development soap opera that was Duke Nukem Forever ended on a disappointing note. More disappointing for publisher Take-Two Interactive, which invested over $12 million in the game. Understandably, Take-Two is suing 3D Realms.

Take-Two Interactive Software Inc. filed a breach of contract suit against Apogee Software Ltd. this week in a Manhattan Court over the developer's "continually delayed" Duke Nukem sequel. Details of the suit were not disclosed in a report by Bloomberg, nor has the New York County Civil Court provided specifics about the damages Take-Two is seeking.

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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.

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The remaining executives at Duke Nukem Forever developer 3D Realms have responded to the charges levied against them by DNF publisher Take-Two, stating that 3DR never received funds from Take-Two for DNF until a payment in 2008.



"Take-Two never paid 3DR advances or any signing bonus or any other funds related to DNF, up until July 2008, at which time they paid $2.5m in connection with another agreement for an unannounced game," added the company. "This is the sum total Take-Two has paid 3DR in connection with DNF."

Take-Two filed suit against 3D Realms last week, claiming that it was owed "millions of dollars" after 3D Realms failed to finish DNF. The game had been in development for over 12 years until a "lack of funding" abruptly shut down production.

According to 3D Realms, Take-Two did eventually offer 3D Realms a "last minute" proposal to acquire the Duke Nukem franchise and the 3DR development team. 3DR says that it refused the offer, and claims that the deal included "no upfront money, no guarantee minimum payment, and no guarantee to complete the DNF game."

The release includes 3DR's take on the negotiation proceedings between the two companies:

Take-Two retains publishing rights for the DNF game, although 3DR retains certain rights to sell the game directly to the public. Late last year, 3DR began negotiations with Take-Two to provide funding to complete the DNF game. In the meantime, 3DR was hitting mutually-agreed milestones, despite not having a new agreement finalized. Take-Two was well aware that 3DR needed the funding to continue the DNF game development. Suddenly, after months of negotiations, Take-Two materially changed the parameters of the proposed funding agreement. 3DR informed Take-Two that it could not financially afford the changes Take-Two was suggesting and would be forced to release the team if an agreement was not reached.

Take-Two made a last minute proposal to acquire the Duke Nukem franchise and the 3DR development team. Take-Two's proposal was unacceptable to 3DR for many reasons, including no upfront money, no guarantee minimum payment, and no guarantee to complete the DNF game. From 3DR's perspective, we viewed Take-Two as trying to acquire the Duke Nukem franchise in a "fire sale." Those negotiations fell through on May 4th, a deal never materialized, and the DNF team was sadly released a few days later.