The game was riddled with bugs and unfinished. In a little over a year, Obsidian Entertainment released Knights of the Old Republic II, but not as it had intended. Despite Knights of the Old Republic II's deep and insightful take on Jedi, the Force and the age-old battle between good and evil, the game couldn't stand by narrative merit alone. Though Obsidian Entertainment received help from the team at LucasArts, it wasn't enough. Unfortunately, Obsidian Entertainment's small team of developers and writers would only have 14-16 months to produce a magnum opus. LucasArts acknowledged the team's previous experience with projects like Baldur's Gate would make it a perfect fit for Knights of the Old Republic II. During this same time, several members of BlackIsle Studio ( Baldur's Gate and Planescape Torment) regrouped and formed Obsidian Entertainment after the collapse of their previous studio.
BioWare was pursuing new IP and chose to walk away from the world of licensed material.
When LucasArts recognized the hit it had on its hands with Knights of the Old Republic, it quickly went to work finding a new studio to bring a sequel to life.
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