Piranha Bytes, owned by the Embracer Group and known as the developer of Gothic, Risen, and ELEX, is shutting down. The former leaders founded a new indie studio.

Piranha Bytes, the Embracer Group-owned German studio behind the Gothic, Risen, and ELEX series, has reportedly closed its doors.

Troubled publisher Embracer has sought a buyer for Piranha Bytes as part of a massive and brutal cost-cutting drive. During the latter, several studios were closed. More than 4,500 people lost their jobs. The rescue of Piranha Bytes was ultimately unsuccessful.

The layoffs at Piranha Bytes were first reported at the end of last year. The company admitted earlier this year that it was in a “difficult position” as it faced possible closure. A recent report from the German website GameStar confirmed that the studio officially closed at the end of June and that its executives are now forming a new indie studio.

Pithead Studio, as the new indie group is called, was founded by Piranha Bytes’ Björn Pankratz and Jennifer Pankratz to continue the role-playing activities of the former studio.

Yesterday morning, Pithead Studio officially announced its existence with a post on X. He also released a new YouTube video (see below) in which he discusses the next steps.

“We founded a new studio last Thursday named Pithead Studio,” they say. The name is explained as a reference to the entrances to mine shafts in their local region.

There are few details about what exactly happened in the last weeks and months of Piranha Bytes. In any case, the duo promises to reveal more in the following videos, which will be published every Monday on their YouTube channel.

As for Embracer, the publisher announced in April that it wanted to split into three companies, including Middle-earth Enterprises and Friends.

Source: GameStar.de