Larian Studios was founded somewhere in 1996, though nobody really knows when, as it kind of just happened. It kinda grew out of a small room/garage start up. The first thing we were making was called Unless, The Treachery Of Death. It was a role-playing game, quite ambitious in scope, but we definitely didn't have enough people or money to finish it. I think there were four of us at that time. At some point, we managed to sell it to a company called Atari. They were forming a PC games division and they were interested in signing Unless.
Unfortunately, the day I was supposed to go to London to meet the guys of Atari, and sign a contract, they announced that they were retiring from the PC scene, which was kind of painful for us. So, we changed this game Unless into something called LMK, and started working on that. After six months of basically living on water and bread, we had a demo ready and started showing it to publishers. Unfortunately, nobody was really interested in a small start up from Belgium with no money whatsoever. They said the risk was too high, and that we had no track record. So in November 1996, we said, ok, if that is the case, we'll prove we can make a game, and we'll make it pretty quick. That was LEDWars. We made that in five months. And when it was almost finished, we signed a publishing contract with Ionos, which is now out of the publishing arena, and in the same week we signed a contract with attic entertainment from Germany for LMK. So LEDWars was shipped somewhere in the summer of 1997 and we continued working on LMK. As most know, something went wrong there, and we were forced to abandon LMK, something which we did very reluctantly.
So in the beginning of 1999, we were again where we started. No money, plenty of ideas, plenty of skills, and no game. The one advantage we had was that we had a much larger and experienced team. We started working on Divinity with a few programmers somewhere in the beginning of 1999, while the rest of the company focussed on trying to survive and bridge the debts that had been caused by LMK. Essentially, we had been funding that title ourselves since the spring of 1998, and by the time we figured out that we were being ripped off, there were several loans and debts that had to be paid. By making a host of what we call "other products" we managed to do that by the summer of 1999, and in August 1999 or so, we started working with the entire team on Divinity, which is what we're still doing right now.