"When former members of Big Huge Games approached Epic last year, we saw the opportunity to help a great group of people while putting them to work on a project that needed a team," Sweeney said in the post on the company's website. "It was a bold initiative and the Impossible folks made a gallant effort, but ultimately it wasn't working out for Epic."
The studio was working on a followup to the company's runaway "Infinity Blade" iOS series. After a media blackout surrounding "Infinity Blade Dungeons" ensued, things weren't looking good for the title. As a result of the studio closure, the game has been put on hold. Sweeney said Epic will give former employees the best chance at a fresh start.
"In addition to providing Impossible Studios employees with three months of severance pay, we’ll be giving the team the opportunity to form a new company with the Impossible Studios name and the awesome Impossibear logo," he said.
Epic swept in and formed Impossible Studios last year after 38 Studios went bankrupt following the release of "Kingdoms of Amalur: Reckoning" in February. Big Huge Games was bought out by former baseball star Curt Schilling's 38 Studios and their work was folded into the studio's larger Amalur universe, which was ultimately going to be mined for an MMO. Despite solid reviews and sales success, the studio was forced to close. This is the second time in less than two years that these employees will be out of jobs.