The story
Runic Games was founded on August 11, 2008, by Travis Baldree (Fate designer), Max Schaefer, Erich Schaefer (co-founder of Blizzard North), and Peter Hu. Originally, the company was incorporated with the placeholder name "Surprise Truck", as suggested by Max Schaefer. The naming resulted in the company receiving a multitude of calls asking whether they were available to do truck delivery jobs. Runic Games was formed specifically for the purpose of keeping the team behind the game Mythos together to develop a new action RPG video game as a "spiritual successor" to their previous project. Following the dissolution of Flagship Studios in 2008, all 14 members of the Seattle team that developed Mythos signed onto Runic Games.
Full production on the game started around November 2008, meaning that the game's total development period was approximately 11 months. At the 2009 Game Developers Conference some members of the Runic Games team were present with an early version of its single-player game, at which point it was revealed that the title would be Torchlight. One notable addition to the staff was Matt Uelmen, composer for Blizzard Entertainment's Diablo series. As of mid-2009, the company employed no fewer than 26 people. Gamasutra named Runic Games one of its "Top 5 Developers" of 2009 for the studio's ability to create the "highly-polished" Torchlight in only 11 months. The company was also praised for its responsiveness to its player community, citing one particular incident:
Mere hours after a forum member mentioned that one of the game's camera effects left her unable to play sections of the games due to an uncommon eye condition, a Runic developer patched in a user toggle for the option -- at 8:00 am on a Sunday morning, no less.
Following the 2009 release of Torchlight, the studio shifted to the production of a sequel Torchlight II. In 2010, Perfect World Entertainment, Inc. bought an $8.4 million majority stake in Runic Games. In March 2014, co-founders Erich Schaefer and Travis Baldree decided to leave Runic and form a new indie studio, Double Damage Games. Max Schaefer left the studio in early 2016; he then founded Echtra Games, which included a number of former Blizzard and Runic developers. In August 2018, Echtra announced Torchlight Frontiers, a shared world game build on the Torchlight IP.
On November 3, 2017, Perfect World announced the closure of Runic Games, along with large layoffs at Motiga. Perfect World said the closure was to reflect its company's focus on games as a service. One set of developers from Runic, including Marsh Lefler, Patrick Blank, Allen Fong, and John Dunbar, along with former Gearbox Software members, established Monster Squad Games and are currently developing a player-versus-environment cooperative game.
From Wikipedia’s article on Runic Games, shared under CC BY-SA 4.0.4