Epic Games today announced that it is shutting down Impossible Studios. No reason was give other than “it wasn’t working out for Epic.”

Impossible was formed only six months ago, on August 9, 2012. The employees at the company were largely from Big Huge Games, a developer that itself was shut down in the wake of the 38 Studios failure. Impossible’s studio director, Sean Dunn, was the former studio general manager at Big Huge and was once a creative director with THQ. As recently as January 29 Dunn had tweeted about how “awesome it is to be part of the Epic Games family.”

Impossible had been working on Infinity Blade: Dungeons, a prequel to the popular Infinity Blade games for iOS. The project has now been put on hold.

At the time it was founded, Impossible had 36 employees at its Hunt Valley, Maryland office. Tim Sweeney, the founder of Epic, has stated that Impossible employees with be given three moths of severance pay. In addition, Epic is releasing its rights to the Impossible Studios name and logo so that the developers can make a go of things on their own.

Below is Sweeney’s statement, in full:

We’re closing Impossible Studios.

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. It was a bold initiative and the Impossible folks made a gallant effort, but ultimately it wasn’t working out for Epic.

In addition to providing Impossible Studios employees with 3 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.

This means that Infinity Blade: Dungeons is now on hold as we figure out the future of the project.

-Tim Sweeney, Founder, Epic Games