Duke Nukem Forever is not only still being developed; it is actually playable at PAX Prime right now.
Duke Nukem Forever, the game that has become synonymous with vaporware, is actually still going to be released. Originally announced back in 1997, Duke Nukem Forever was being worked on up until last year when 3D Realms laid off most of its staff. They were then sued by their publisher, Take-Two Interactive. At that point, everybody figured the game was finally dead until PAX goers were surprised with a playable demo. It is now being developed by Gearbox Software and is on track for a 2011 release date. Apparently the rumors of the development being handed off to Gearbox were true. I was really disappointed when the game was rumored to be canceled and it will be great to finally play the long awaited sequel.
Duke Nukem Forever is going to be released for PlayStation 3, Xbox 360, and the PC sometime in 2011.