Kotaku and "claiming to have knowledge of the situation," development on Duke Nukem Forever is continuing -- until completion -- with Borderlands developer Gearbox Software. Stranger still, the sources also claim that a "playable demo" will be distributed at some point "later this year." While Take-Two confirmed that it retains the rights to DNF, it didn't offer any comment on the matter.
Gearbox head Randy Pitchford couldn't say anything either, but did note that he might be able to "better clarify the situation" at this year's PAX Prime. Duke Nukem creator George Broussard declined to comment as well. Although this is most certainly a "rumor" for now, we'd still like to wish Gearbox the best of luck over the next 15 years.