The project was officially canceled in 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.Their role seems to be 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 successful MMOs, including Dark Age of Camelot.

Though Warhammer Online: Age of Reckoning is being developed by Mythic Entertainment, Games Workshop is also involved with the ongoing development of the project.  It is hoped that Mythic having developed some MMO game play elements and 25 years of Games Workshop's game industry background will lead to a successful game.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.