The news comes after developer Impossible Studios was shut down in February, just six months after the outfit was originally formed.
"It was a concept that originated from Epic and was an idea that we were happy to support. But when the studio working on [Dungeons] was closed, the game was canceled. That's really all I can say," Mustard said.
Though the game is no more, that does not mean the Infinity Blade franchise is going away altogether.
"There's more we at Chair are totally planning to do in the Infinity Blade universe," Mustard added. "More games, more books, maybe even other products. And we are very excited about that."
Epic Games announced Infinity Blade: Dungeons during an Apple iPad event in March 2012. Epic Games president Mike Capps said of the game, "These guys are redefining gaming again."