Former Arkane Austin head Harvey Smith and longtime collaborator Ben Horne have formed Black Pony Immersive, a new studio dedicated to narrative-rich first-person action RPGs. The studio focuses on immersive sims, the genre Smith helped define through his work on the original Deus Ex and co-heading the Dishonored series. Joining the team as design director is Ricardo Bare, former creative director of Redfall, Prey, and Dishonored. The studio is staffed with veterans from Insomniac, Epic, Avalanche, and Volition, and operates from Austin, Texas, with remote contributors nationwide.

The announcement arrives amid significant upheaval in the gaming industry, particularly following recent layoffs and restructuring at Xbox. Arkane Studios, once led by Smith and Horne, faces potential closure as Xbox considers shutting down operations and canceling the Blade project. Smith departed Arkane Austin in 2024 after Xbox's acquisition and subsequent shutdown of the studio.

While details about Black Pony Immersive's first project remain under wraps, the team's mission is clear: deliver immersive sims with rich original worlds and emergent gameplay. Their website nods to Looking Glass Studios, pioneers of the genre with classics like System Shock and Thief. Smith emphasized in a press release that the studio aims to create single-player experiences that reward player curiosity and exploration.