Högdahl serving as the company's head and tech lead, was responsible for creating a new game engine for future games, and looking for publishers willing to help publish its games. At that time, the company had only about five employees, and had created a prototype for a video game and pitched it to publishers at E3 1998. Gremlin Interactive agreed to publish the game, and the deal was finalized in late 1998. The company grew to have roughly eleven staff members. The game was a first-person action role-playing game named Sorcery. With a high fantasy setting, the game featured 3D visuals and its gameplay was similar to that of Diablo and Quake. However, Gremlin Interactive was acquired by Infogrames in 2000 and the partnership with Starbreeze dissolved, resulting in the game's cancellation.
