Things are once again getting hazy for Duke Nukem Developer 3D Realms, who is now claiming that the studio will continue, but in a much smaller capacity. After laying off the majority of its developers, the majority of which were working on Duke Nukem Forever, sources now tell us that despite what has been said, 3D Realms has not closed.

From the latest news that we have received, the company will continue as a co-creator of games based on the Duke Nukem franchise. The Duke Nukem Forever team of developers has been let go and the company claims that they will be regrouping and reorganizing.

As we previously explained in our last story, the problem is money and the lack of it for 3D Realms. While the rights to the Duke Nukem Forever franchise as well as Duke Nukem are the core asset of 3D Realms, the company will continue. As for the future of Duke Nukem Forever, despite what others are writing it may not be over. Our sources suggest that the company may be looking for a partner to take on the unfinished development and continue to push the game forward toward release, and 3D Realms would at least be a part of this process.

As for the Take-Two lawsuit, 3D Realms claims that they own nothing but the publishing rights to Duke Nukem Forever. 3D Realms has said that they received no money from this transaction and they continue to own the rights to the still unfinished Duke Nukem Forever. On this basis, 3D Realms claims that the suit by Take-Two is baseless and without merit. Of course, that will be for a court to decide and if they are anything like us, they will wonder if Duke Nukem Forever was really heading toward an eventual release.

3D Realms goes a bit further by claiming that since negotiations between Take-Two and 3D Realms fell apart for additional funding to finish the game, the company is trying to acquire the title at fire sale prices using bully tactics.

So, the last chapter in this saga has yet to be written and who knows what is going to happen next. As with everything “Duke Nukem Forever,” you can be certain that there is much more drama to play out before this is all settled.