The second online game development began under the company Climax Online. The project was officially canceled in June 2004 when Games Workshop determined that the roll-out costs would be too high. However, work on the game never actually stopped as Climax Online continued the project using their own funds until the company reported in late 2004 that the Warhammer Online project was shut down due to difficulty in securing a publishing agreement. With the license available again, Games Workshop was approached by Mythic Entertainment, who were interested in acquiring the license and starting a new project from scratch. A long-standing relationship between several Games Workshop managers and the CEO of Mythic Mark Jacobs ensured that a deal was quickly reached. The Warhammer Online license was acquired by Mythic on May 18, 2005. Mythic would soon cancel its original follow-up project Imperator Online after gaining the Warhammer license.
Warhammer Online: Age of Reckoning is not purely derived from either Warhammer Fantasy Battles or Warhammer Fantasy Roleplay or any other source alone, but rather from the Warhammer Fantasy universe as a whole. It was developed by Mythic Entertainment, but Games Workshop is also involved with the ongoing development of the project. Their role is not only to ensure that the project remains true to the Warhammer Fantasy IP, but also to work with Mythic to allow for the appropriate development and extension of the IP as necessitated for the MMO. Mythic has previously created MMOs, including Dark Age of Camelot.
During the development of Warhammer Online, Mythic featured a video blog of Creative Director Paul Barnett. These videos gave the viewer an insight into the work that went on behind the scenes of WAR, often showcasing development screens and concept art for the game. Mythic also released "Development Diaries" from time to time, meant to give readers a deeper look into the ongoing development of WAR.
