Kalypso and developer Boxed Dreams have teamed up to open a new studio in Munich, called Realmforge Studios GmbH.
Boxed Dreams is currently working on adventure game Ceville for Kalypso, which is due for release in February 2009. After that, all ten members of the team will be absorbed into Realmforge, with plans to double size by the middle of 2009.
Realmforge's first title is to be a 'business simulation package', planned for release at the end of 2009.
"We have built a close and friendly relationship with Boxed Dreams during the development of Ceville and we are delighted to further this partnership," said Stefan Marcinek, managing director of Kalypso Media.
"Kalypso Media, who is funding Realmforge Studios GmbH as the majority shareholder, is delighted that this new opportunity will offer further chances for our teams to work closely together."
Simon Hellwig, also managing director of Kalypso Media, added: "The formation of our own development studio increases our independence and flexibility with regard to our choice of products. Furthermore, the studio will enable us to react even faster and more efficiently to the demands of the market and our customers."