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New World Computing

New World Computing, Inc. was an American computer and video game developer and publisher based in , best known for its pioneering work in and genres. Founded in 1984 by , his wife Michaela Van Caneghem, and Mark Caldwell, the company quickly established itself with innovative titles that blended fantasy storytelling, complex gameplay mechanics, and expansive worlds. Its flagship creations included the long-running series of action games, starting with the original Might and Magic: The Secret of the Inner Sanctum in 1986, which introduced first-person dungeon crawling and open-world exploration to PC gaming. The studio also developed the acclaimed spin-off series, beginning with Heroes of Might and Magic: A Strategic Quest in 1995, which popularized with progression, , and tactical . Throughout the 1980s and 1990s, New World Computing expanded its portfolio with other notable releases, such as (1990), a precursor to the Heroes series that influenced modern titles like , and Might and Magic VI: The Mandate of Heaven (1998), which introduced full 3D graphics to the core series for enhanced immersion. The company's games were primarily targeted at PC platforms, emphasizing deep narrative depth, multiplayer elements in later entries, and modding support that fostered vibrant communities. By the mid-1990s, New World had become a key player in the RPG and strategy markets, with titles like (1999) achieving critical and commercial success for its balanced gameplay and expansive campaigns. In July 1996, New World Computing was acquired by The 3DO Company for approximately $13 million, integrating its development teams and intellectual properties into 3DO's portfolio to bolster its software offerings. Under 3DO, the studio continued producing hits, including Might and Magic VIII: Day of the Destroyer (2000) and Heroes of Might and Magic IV (2002), but faced challenges amid the parent company's financial struggles. Operations wound down following 3DO's bankruptcy filing in 2003, leading to the studio's closure and the sale of the Might and Magic franchise rights to Ubisoft, which revived elements of the series in subsequent years. New World Computing's legacy endures through its influence on fantasy gaming, with remastered editions and fan projects keeping its classics alive.

History

Founding and early years

New World Computing, Inc. was founded in 1984 in the area by , his wife Michaela Van Caneghem, and associate Mark Caldwell, establishing the company as a firm focused on the burgeoning market, particularly the and early PCs. The founders, led by —a recent UCLA graduate in mathematics and computer science—aimed to create innovative gaming experiences, drawing from Van Caneghem's self-taught programming skills honed on machines and his passion for board games like . Operating initially from a modest apartment in the area, the small team emphasized hands-on development without significant external funding, reflecting the grassroots nature of early 1980s indie software ventures. In its formative phase, New World Computing concentrated on building custom tools for game creation, including an engine for first-person dungeon crawling and elements tailored for limited hardware. This toolkit allowed the team to prototype interactive worlds efficiently, prioritizing open exploration and over linear narratives. While not commercially released as a standalone product, it served as the foundation for internal projects, enabling rapid iteration on custom content amid the era's resource constraints. The company's early efforts thus bridged mechanics with RPG innovation, setting the stage for more ambitious titles. Financial challenges defined these initial years, as the startup grappled with self-financing and the high costs of production and distribution in a competitive market dominated by larger publishers. Lacking , the Van Caneghems and Caldwell relied on personal savings and part-time work, leading to lean operations with just a handful of collaborators. By the mid-1980s, these struggles prompted a strategic toward original , moving away from tool-based custom development to full-scale game production that could yield sustainable revenue. This shift culminated in the company's first major breakthrough, transitioning toward games that would define its legacy.

Growth through the Might and Magic series

The release of : Book One – The Secret of the Inner Sanctum in 1986 marked New World Computing's breakthrough as a developer, utilizing in-house tools to create an open-world exploration system and party-based turn-based combat that set the foundation for the series. Developed primarily by founder on the before porting to and other platforms, the game featured a vast, interconnected world of with non-linear quests, blending and fantasy elements in a first-person perspective. Its innovative automapping and character progression mechanics contributed to strong initial sales, positioning the title as a leading second-tier computer game (CRPG) of the era. Building on this momentum, New World Computing expanded the franchise with Might and Magic II: Gates to Another World in 1988, which refined the core engine with enhanced graphics, new character classes like the and , and skills such as for deeper exploration. The series continued to evolve technically in Might and Magic III: Isles of Terra (1991), introducing 256-color VGA graphics, a mouse-driven , dynamic enemy encounters visible in the , and save-anywhere functionality, marking a shift toward pseudo-3D rendering for more immersive dungeons and outdoor areas. Subsequent entries, Might and Magic IV: Clouds of Xeen (1992) and Might and Magic V: Darkside of Xeen (1993), maintained this engine while adding quest notes, separate inventories for items, and adjustable difficulty levels; the two were later combined into World of Xeen (1994), allowing seamless travel between worlds via teleporter pyramids for expanded crossover storytelling. These improvements enabled larger, more complex campaigns without overhauling the established party-based combat and skill systems. The series achieved bestseller status on PC platforms throughout the late 1980s and early 1990s, driving significant commercial growth for New World Computing and enabling the company to scale operations. Steady sales, particularly from ports to systems like the Commodore 64 and , provided the financial stability to relocate from a garage-based setup to a dedicated office in , , shortly after the first game's launch. By the early 1990s, this success spurred hiring spikes, expanding the team from a small group of five programmers and artists in 1988 to a larger staff focused on iterative development and porting efforts, solidifying the company's reputation in the CRPG market. A key partnership with for distribution beginning in 1987 amplified the reach of Might and Magic Book One, facilitating wider PC and contributing to its bestseller rankings. This collaboration was followed by affiliations with Brøderbund for later titles, but New World Computing also experimented with spin-offs to diversify, such as the 1990 turn-based strategy game , published by , which tested strategic elements drawn from the RPG's world-building while prioritizing core franchise growth.

Acquisition by The 3DO Company

On July 10, 1996, The 3DO Company announced the acquisition of New World Computing's assets from NTN Communications for approximately $13 million in common stock, along with the assumption of certain liabilities, effectively integrating NWC as a wholly owned subsidiary and division under Studio 3DO. The deal closed following the announcement. The acquisition was strategically motivated by 3DO's desire to strengthen its PC software division, which had been secondary to its console hardware focus, by gaining access to NWC's established audience of over 3 million gamers and expertise in and genres. This move provided NWC with expanded resources, including larger development budgets, enabling founder to shift emphasis from business operations to creative direction while retaining his role as president of the studio. Under the new ownership, NWC's operations initially remained in , but integrated into 3DO's broader structure in Redwood City, fostering increased cross-team collaborations with other acquired studios like Archetype Interactive and Cyclone Studios. Immediate post-acquisition projects benefited from 3DO's publishing support and enhanced marketing efforts, including the release of Heroes of II later that year and the ongoing development of Might and Magic VI: The Mandate of Heaven (initially titled Wages of War), which launched in 1998 with greater promotional backing. These initiatives allowed NWC to maintain its focus on the franchise while leveraging 3DO's distribution network to reach wider audiences.

Decline and closure

Following the acquisition by in 1996, New World Computing faced increasing financial pressures as 3DO shifted focus to its struggling hardware ventures, particularly the failed console project announced in 1996 and canceled in 1997, which diverted resources and contributed to overall company debt without generating revenue. This strain culminated in significant operational cutbacks at New World Computing. On April 15, 2002, announced mass layoffs at New World Computing, substantially reducing the studio's staff and affecting teams working on Heroes of Might and Magic IV expansions and the early planning stages of X. These cuts halted development on ongoing projects, including the nascent X, which had been in preliminary design under founder before being canceled amid the downsizing. Despite the turmoil, New World Computing managed to release its final title, Heroes of Might and Magic IV, on March 28, 2002, marking the studio's last major output before further instability. 3DO's mounting debts led to a Chapter 11 filing on May 28, 2003, effectively dissolving New World Computing by July of that year as the parent company liquidated assets to pay creditors. As part of the proceedings, 3DO sold the intellectual property rights to the and franchises to for $1.3 million in August 2003, ending New World Computing's independent operations and transferring its key assets to the publisher.

Games

Might and Magic role-playing games

The games, developed by New World Computing, form a cornerstone of the company's output, comprising nine main titles released between and 2002. These party-based computer games (CRPGs) emphasize first-person exploration in expansive, open-world environments, turn-based tactical involving groups of up to four or more characters, and a blend of fantasy and elements in their lore. Players assemble and manage diverse parties of adventurers—such as knights, clerics, and sorcerers—who level up through quests, , and puzzle-solving, uncovering secrets in procedurally influenced worlds filled with dungeons, towns, and wilderness areas. The series pioneered non-linear progression, rewarding exploration with hidden items, spells, and story revelations, setting it apart from more linear contemporaries like . Key releases introduced incremental innovations that evolved the genre. : Book One – Secret of the Inner Sanctum (1986) established the foundational mechanics on the , featuring a grid-based first-person view, over 200 monsters, 94 spells, and 250 items across 55 explorable areas, with an emphasis on side quests like delivering messages or solving environmental puzzles. II: Gates to Another World (1988) added multiplayer support for up to six players and an auto-mapping system to aid navigation. III: Isles of Terra (1991) expanded to outdoor maps beyond indoor dungeons, enabling seamless transitions between environments. The fourth and fifth entries, Clouds of Xeen (1992) and Darkside of Xeen (1993)—later combined as World of Xeen—innovated by linking two full games into a single interconnected world, allowing characters to travel between parallel dimensions via portals, effectively doubling the content and introducing a massive shared storyline. Later titles shifted toward more advanced technology and refined systems. (1998) transitioned to a custom , supporting hybrid where players could pause for tactical decisions, alongside promotions from non-playable characters to advance class skills. (1999) built on this with a dual-path morality system influencing faction alignments and endings, while retaining the series' generous experience rewards for high-level play up to 100 or beyond. (2000) incorporated elements more prominently and featured a skill-based progression without rigid classes, allowing flexible character builds. The final entry, (2002), emphasized open-world freedom with non-linear questing but used a modified , marking a departure from in-house development. Development of the series relied on New World Computing's custom engines, starting with 2D tile-based systems for the early games coded primarily by founder , and progressing to proprietary 3D renderers for titles VI through VIII that handled large-scale environments and dynamic lighting. By March 1994, the first five games had collectively sold over one million units, reflecting strong commercial success that fueled company growth to over 100 employees at its peak. The CRPG backstory unifies the series' , revealing the fictional worlds as remnants of a crashed ship named CRPG-2 from , where ancient aliens (the "Ancients") seeded human descendants with advanced technology disguised as , a twist progressively unveiled across installments to tie sci-fi origins to fantasy adventures.

Heroes of Might and Magic series

The series, developed by New World Computing, originated as a spin-off from the universe, debuting with Heroes of Might and Magic: A Strategic Quest in 1995. This inaugural title adapted the established lore into centered on , hero progression through skill development and artifact collection, and strategic elements like castle-building for town expansion and army recruitment from creature dwellings. Designed under the leadership of founder , the game emphasized exploration of procedurally generated maps, tactical combat on hex-based grids, and weekly cycles for creature growth, setting the foundation for the series' blend of and mechanics. The sequel, Heroes of Might and Magic II: The Succession Wars (1996), built on this framework by expanding the faction system to six playable castles, introducing the and Necromancer alignments with unique units and magic schools alongside the original , , Sorceress, and options. It refined hero progression with multiclass specialization and enhanced multiplayer support, while maintaining core features like resource gathering and army assembly through castle upgrades. Heroes of Might and Magic III: The Restoration of Erathia (1999) marked a pivotal evolution, incorporating pseudo-3D graphics for more detailed creature animations and terrain rendering, alongside eight factions and expansive campaigns tied to the Erathia storyline. Developed collaboratively by Van Caneghem's team, it achieved commercial prominence, with the title selling over 2 million units and contributing to the series surpassing 1.5 million total sales by late 1999. The series concluded under New World Computing with Heroes of Might and Magic IV (2002), which introduced a granular daily turn structure simulating a week-long cycle for unit production and events, alongside a revamped alignment system featuring six factions (, , , , , and Might) where heroes could recruit creatures from specialized towns without traditional neutral stacks. This installment emphasized individualized hero growth across eleven starting classes and deeper narrative integration through interconnected campaigns, while preserving signature mechanics like castle construction for army buildup and resource-driven expansion. Overall, the series' innovations in strategic depth and replayability solidified its role as a cornerstone of New World Computing's portfolio, with castle-building and recruitment systems distinguishing it as a genre benchmark.

Other titles

Besides the core franchises, New World Computing developed approximately 5-7 minor titles, primarily in the late 1980s and early 1990s, showcasing early experimentation with strategy, , and adventure genres. , released in 1990, stands out as an early non-series release and a turn-based adventure-strategy hybrid where players command a hero gathering armies to reclaim a stolen scepter across a divided into multiple continents. Designed by company founder , it emphasized tactical combat, resource management, and exploration on an overhead map, blending elements of with strategic recruitment of troops from various terrains. Published initially for and later ported to platforms like the and , the game achieved cult status for its innovative gameplay that influenced subsequent strategy titles, including serving as a precursor to the series. Another original title, Planet's Edge (1991), represented New World Computing's venture into with an open-ended adventure involving , real-time spaceship combat, and turn-based ground encounters. Players assemble a crew to investigate Earth's sudden disappearance, mining resources, trading, and solving puzzles across alien planets in a dynamic universe. Developed and published in-house for with later ports to and , it highlighted the studio's versatility beyond fantasy settings but received mixed reception due to its ambitious scope and technical challenges. Earlier efforts included : Crusaders of Khazan (1989), an action-oriented adaptation of the , featuring party-based dungeon crawling and combat in a humorous fantasy world. Nuclear War (1989), a satirical simulating global thermonuclear conflict through card-based turns and humorous animations, drew from the of the same name. These, along with puzzle title (1994), rounded out the studio's diverse early portfolio. In addition, Multimedia Celebrity Poker (1995) offered a poker simulation featuring celebrity opponents, showcasing the company's foray into card games with video integration. In addition to originals, New World Computing handled ports of their properties to consoles like the and produced development tools, though these were secondary to their core output.

Key personnel

Jon Van Caneghem

, born in 1962 in , , graduated from the (UCLA) with a degree in . During his university years, he discovered a passion for and game development, leading him to found New World Computing in 1984 at the age of 22 from his apartment in . As a self-taught game developer, Van Caneghem handled much of the early work himself, including programming the original on an computer while completing his studies. Van Caneghem served as the lead designer and programmer for Might and Magic Book One: The Secret of the Inner Sanctum (1986), where he established the series' core mechanics, such as first-person exploration, party-based combat, and an open-world structure blending science fiction and fantasy elements. He oversaw the development of all major entries in the Might and Magic role-playing game series and the spin-off Heroes of Might and Magic strategy series, directing creative vision and production for titles that defined the genres through innovative gameplay and expansive lore. His hands-on approach in the early years evolved into executive oversight as New World Computing grew, ensuring consistency across the franchises. In 1996, Van Caneghem sold New World Computing to for approximately $13 million, negotiating terms that allowed him to retain creative control as president and lead visionary, focusing more on design than business operations. He remained with until its bankruptcy in 2003, after which he briefly joined in 2004 as an alongside , departing the following year. In 2006, he founded Trion World Network in , serving as president and producing online games until 2009. Subsequently, he consulted with on early revivals of the intellectual property, including discussions around Heroes of Might and Magic V, before leading studios at on projects like . In 2014, he founded the independent studio VC Mobile Entertainment to develop mobile games, such as Creature Quest, and later co-founded Digital Insight Games in 2021 to explore blockchain-integrated titles. For his lifetime contributions to video games, Van Caneghem was inducted into the Computer Gaming World Hall of Fame in 2004 in the and category. As of June 2025, Digital Insight Games, co-founded by Van Caneghem, raised $7.5 million in funding for blockchain-integrated titles.

Other contributors

Michaela Van Caneghem co-founded New World Computing in 1984 alongside her husband and Mark Caldwell, serving as a key figure in the company's early operations. She contributed to , particularly in the initial titles, where she is credited as a designer for Might and Magic: Book One - Secret of the Inner Sanctum (1986) and Might and Magic II: Gates to Another World (1989). Her involvement extended to business management and artistic elements, helping shape the and overall aesthetic of early releases. Mark Caldwell, another co-founder, focused on technical aspects, including programming, and later served as executive producer for projects such as the Heroes Chronicles series (2000–2001), overseeing development during the company's expansion under The 3DO Company. Beyond the founders, Julia Ulano served as lead artist for several landmark titles, including Heroes of Might and Magic (1995), Heroes of Might and Magic II (1996), and Heroes of Might and Magic III: The Restoration of Erathia (1999), where she directed visual style and asset creation to maintain the series' distinctive fantasy aesthetic. Her work also extended to Might and Magic VI: The Mandate of Heaven (1998), contributing to the transition toward 3D environments while preserving lore consistency. New World Computing began as a small core team of three but expanded significantly in the , hiring specialized talent for art, programming, and audio to support larger projects like the series. This growth emphasized in-house expertise to ensure narrative and stylistic unity across the universe, with teams peaking during the late boom in and strategy development. Following the studio's closure in 2003 after The Company's bankruptcy, core personnel like moved to other ventures, while others in the industry continued contributing to similar genres.

Legacy

Impact on role-playing and strategy genres

New World Computing's Might and Magic series introduced pioneering innovations to the game genre in the and , particularly through its emphasis on open-world exploration and party-based systems. Starting with the original in 1986, the games featured free-scrolling, real-time movement in a first-person perspective, departing from rigid grid-based designs common in contemporaries like , and allowed players to control parties of up to eight customizable characters that could evolve across classes via skill-based progression. This structure, combined with a rich lore blending and fantasy elements—such as ancient civilizations and interdimensional threats—created immersive, non-linear worlds spanning multiple regions, towns, and dungeons, prioritizing player agency and discovery over linear narratives. These advancements influenced later CRPGs by establishing standards for interactive depth and replayability, as seen in the series' integration of optional real-time combat modes and tools like quest logs and auto-maps that enhanced accessibility without sacrificing complexity. By the mid-1990s, titles had helped solidify the as a viable platform for sophisticated RPGs, with the franchise achieving over 3.5 million units sold by alongside its spin-offs, demonstrating commercial viability for party-driven, lore-heavy designs amid the era's shift toward more narrative-focused games. In the strategy genre, New World Computing's series innovated by fusing progression with mechanics and , popularizing accessible yet deep gameplay through hero development, resource gathering, and tactical army battles on hex-grid maps. Launched in , the series allowed players to level up heroes with skills and spells while managing creature recruitment and castle upgrades, creating a hybrid experience that balanced , , and in fantasy settings tied to the universe. This blend made more approachable for fans, influencing the genre's evolution toward integrated character growth and strategic variety. The series' cultural impact extended to vibrant fan communities and scenes that emerged in the late , driven by dedicated sites hosting custom maps, scenarios, and engine tweaks to extend longevity. For instance, Heroes of Might and Magic III (1999) fostered early competitive play, with organized online tournaments in the early 2000s attracting thousands of participants in esports-like formats, underscoring its enduring appeal in structured, multiplayer strategy contests. By , the combined franchises had surpassed significant sales milestones, reflecting their role in shaping PC gaming's for both genres.

Intellectual property and revivals

Following the closure of New World Computing in 2003 amid The Company's bankruptcy, Entertainment acquired the intellectual property rights to the franchise, including the series, for $1.3 million. This acquisition enabled to continue developing titles under these banners, such as Dark Messiah of Might and Magic in 2006, a first-person set in the universe developed by , and in 2011, the sixth entry in the Heroes series produced by Black Hole Entertainment. Separately, the rights to the franchise, originally developed by in 1990, were purchased by Russian publisher in 2007. This led to a revival with in 2008, a game developed by Katauri Interactive that paid homage to the original while introducing new mechanics like hero skill trees and faction-specific campaigns. Subsequent sequels, including (2009) and (2021), have been published under , a later acquired by in 2022. Under Ubisoft's stewardship, the Might and Magic properties have seen ongoing support through remasters and ports rather than entirely new core titles branded under the original New World Computing name, reflecting the studio's defunct status since 2003. A notable example is the 2015 release of Heroes of Might and Magic III - HD Edition, an updated version of the 1999 classic with widescreen support, improved graphics, and compatibility for modern platforms including iOS and Android mobile devices. More recently, in 2024, Ubisoft announced Heroes of Might and Magic: Olden Era, a new installment developed by partner studio Unfrozen, with early access delayed to 2026 and a demo released in October 2025, which returns to the series' roots with top-down turn-based strategy gameplay in a prequel storyline. Fan communities have also contributed to the preservation and revival of New World Computing's legacy through open-source projects that recreate and enhance classic game engines. Projects like VCMI, an open-source engine for Heroes of Might and Magic III launched in 2010, allow for larger maps, multiplayer improvements, and mod support while maintaining compatibility with original assets. Similarly, fheroes2 recreates the engine for Heroes of Might and Magic II (1996), enabling high-resolution graphics, , and bug fixes in a fully open-source framework. These efforts have sustained player interest without official involvement, fostering custom campaigns and expansions for the aging titles.

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