Embracer has reportedly shut down Gothic developer Piranha Bytes

We have more studio closure news for you today, unfortunately, as Piranha Bytes has reportedly shut down. The Embracer-owned studio looks like it has been a casualty of its parent company’s restructuring efforts, which has led to numerous other studio closures this year, including TimeSplitters developer Free Radical Design.

Embracer has reportedly closed Gothic and Risen developer Piranha Bytes

As reported by CD Action, a former Piranha Bytes employee has said that Embracer stopped funding Piranha Bytes at the end of June after the developer failed to find a new owner or publisher. Piranha Bytes reported in January that it was in a “difficult situation” and looking for a partner due to facing closure or sale as part of Embracer’s restructuring efforts.

Piranha Bytes was established in 1977, bringing us fantastic games like Gothic, Risen, and Elex, and consisted of 31 full-time employees when Embracer acquired it in 2019. According to the former employee, the developer was attempting to secure funding for an Unreal Engine 5-developed dark fantasy game similar to Gothic.

While Piranha Bytes hasn’t commented on the studio’s potential closure yet, two of its veterans have announced their new indie-focused studio, Pithead Studio. The studio’s founders, Bjorn Pankratz, who joined Piranha in 1999, and Jennifer Pankratz, who joined in 2006, hope to “develop immersive and fantastic indie games” with Pinhead.

Earlier this year, Embracer announced that it had split into three companies following the conclusion of its restructuring program.