Embracer’s Gothic and Elex studio Piranha Bytes has reportedly closed down

Gothic, Risen and Elex studio Piranha Bytes has reportedly closed its doors after more than 25 years.

A former employee told CD Action that the German studio ceased operations at the end of June after financing from parent company Embracer Group ended and it failed to find a new owner or publishing publisher.

It was reported in January that Piranha Bytes was facing closure as part of Embracer’s ongoing restructuring efforts unless it could secure new funding.

The company had reportedly hoped to secure a cash injection to develop a new dark fantasy title resembling Gothic using Unreal Engine 5.

It’s claimed that Piranha Bytes is unlikely to release any official statements regarding the fate of the studio, instead allowing it to go out quietly.

Founded in 1997, Piranha Bytes had approximately 31 full-time employees when it was acquired by Embracer in May 2019.

Embracer announced last June that it was implementing a restructuring programme which would involve the closure of studios, layoffs and the cancellation of some projects.

Reports of the Gothic studio’s closure coincide with the establishment of a new studio by Piranha Bytes veterans Björn Pankratz and Jennifer Pankratz.

The married couple, who reportedly left Piranha Bytes in November, have announced the formation of Pithead Studio.

It will “focus on developing indie games”, according to Jennifer, who was formerly a game designer at Piranha Bytes, where Björn served as creative director.