The company was founded in July 2012 by a team of 40 staff members, including chief executive officer Andreas Speer, previously employed by Spellbound Entertainment, which filed for insolvency earlier that year.

[2] Following the release of Arcania: Fall of Setarrif, the game's developer, Spellbound Entertainment, filed for insolvency in March 2012.

The game features music from The Great Giana Sisters' original composer Chris Huelsbeck and the Swedish "SID metal" band Machinae Supremacy.

The game entered early access on Steam on 14 December 2017, and had its full release on 30 April 2019 for Microsoft Windows, PlayStation 4, and Xbox One.

[16] In January 2024, it was announced that the studio had laid off roughly 50% of its team, with the creative directors and most of the executives keeping their jobs.