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

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

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.

3D Realms was founded in 1987 by George Broussard & Scott Miller. The game studio was best known for its Duke Nukem series of shooters. The studio had infamously been working on Duke Nukem Forever, for over 12 years.

Update:

On the official 3D Realms forum the shut down is confirmed by Joe Siegler from the 3D Realms staff.