Arkane Studios was on the verge of closure before the development of Dishonored, with only four months of funding remaining, according to co-creator Harvey Smith. The studio had been undertaking numerous contract projects in an effort to stay afloat.
"People would come tell us 'Man, to keep the business alive, you better take some contracts. You need to be working on whatever you can get,'" Smith recounted in an interview with The Game Business. "And for a while we tried that, even though it felt wrong."
During this period, Arkane was involved in a multitude of projects, including work on EA's Boom Blox, pitching to Ubisoft, and contributing to a zombie shooter. The studio was essentially farming out its talent to nine different projects simultaneously. Smith noted the dire situation: "There was a point in time when Arkane was about to go under. I think we had four months of money left."
However, Arkane eventually made the decision to pivot away from taking on just any third-party work to survive and instead focus on creating their own distinct vision. "At some point, we realised this is not the way," Smith explained. "We are here to do a very specific thing. Let's focus on that, and let's go under if that's what is going to happen."
This commitment to their own projects ultimately led to the creation of Dishonored, a game that significantly bolstered Arkane's reputation and is considered a major turning point for the studio. Smith believes this experience reinforced his conviction that pursuing genuine passion is the most effective path to success in the games industry. He also stated that his new studio, Black Pony Immersive, will avoid chasing trends and creative risks that have previously led to less successful ventures, referencing Redfall as Arkane's "one true misfire."