Piranha Bytes, development studio responsible for the Gothic and Risen action role-playing series, seems to have faced the fate that so many other studios have been facing this year – closure. The studio’s owner Embracer has been searching for a buyer for the German based company since a failed two billion dollar deal with Savvy Games Group, which receives some backing from Saudi Arabia. The fallout of the deal forced Embracer to cut costs and Piranha Bytes has been on the chopping block ever since. 

The studio released their last game in 2022, ELEX II, which received middling reviews from critics, saying it felt like a game from the mid-00s back when Gothic 3 was made. Either way, it seems ELEX II will be the studio’s final legacy, unless Piranha Bytes receives a revival in the future.

The company’s writing has been on the wall, with reports saying they’d been on the hunt for a new publisher since January. Despite their CEO reminding people to not “write [them] off just yet,” it seems that the end has come. Luckily when one door closes another door opens, and while news of Piranha Bytes’ closure broke this morning, along with their website going inactive, a new studio has sprung up. Pithead Studio, a new indie studio, has been formally announced by former Piranha Bytes leaders Björn Pankratz and Jenny Pankratz. Fans of the studio might have more to look forward to despite its closure. The announcement video saw the pair address the silence over Piranha Bytes, promising to answer questions about Pithead’s formation on their Youtube channel, weekly on Monday. 

Ultimately Piranha Bytes’ closure feels like more of the same in a year where the industry has been hit hard. It’s likely that more such cancellations will follow. Hopefully Pinhead Studios can flourish where its predecessor struggled. Maybe if it succeeds, Pinhead can show how studios might revolutionize for a smaller, more indie focused game experience.