Arkane Studios developed Dishonored after pivoting from a cancelled project. The game originated as a pitch for Thief 4 at the studio's Austin location. Bethesda approached Arkane to develop either Thief 4 or a Blade Runner title. Both initial projects were ultimately cancelled by the publisher.
Arkane repurposed cancelled stealth game materials into a new standalone franchise.
The development team repurposed the base materials from the Thief 4 concept into Dishonored. Co-directors Raphaël Colantonio and Harvey Smith shared direction duties on the final project. Colantonio noted that the original pitch for Thief was highly exciting. Smith recalled having an amazing pitch for what would have been Thief 4.

The pivot to Dishonored marked a significant shift in Arkane's development strategy. The studio transformed a cancelled stealth game concept into a new IP. This transition allowed the team to explore different gameplay mechanics while retaining core design elements from their initial plans.
Dishonored emerged as a distinct title separate from its Thief origins. The game incorporated unique world-building and narrative structures. Arkane Studios successfully launched Dishonored as a standalone franchise following the cancellation of the original pitches.
Source: PCGAMESN




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