# Yosemite Entertainment <small style="color: gray">Last updated: January 31, 2026</small> ## Overview Yosemite Entertainment was an American video game development studio formed in 1998 as a rebranding of Sierra On-Line's original headquarters in Oakhurst, California.[^ref-1] The studio served as Sierra's adventure game and online multiplayer division, internally known as Sierra FX, and was responsible for some of Sierra's most ambitious late-1990s projects including the final Quest for Glory installment and pioneering online titles.[^ref-2] Named after the nearby Yosemite National Park, the studio occupied the historic buildings where Ken and Roberta Williams had built Sierra into a gaming powerhouse.[^ref-3] Yosemite Entertainment's brief existence represented the twilight years of Sierra's original creative vision, as corporate reorganization following CUC International's acquisition fundamentally changed the company's priorities.[^ref-4] The studio was responsible for maintaining The Realm Online, one of the first graphical MMORPGs, and developing Quest for Glory V: Dragon Fire, which concluded one of Sierra's most beloved adventure-RPG hybrid series.[^ref-5] Despite promising projects in development, including the ambitious Babylon 5: Into the Fire and Middle-earth Online, the studio was shut down on February 22, 1999, during what became known as "Chainsaw Monday."[^ref-6] ## History ### Formation and Sierra's Reorganization When Sierra On-Line moved its headquarters from Oakhurst, California, to Bellevue, Washington, in the mid-1990s, the original Oakhurst facility continued operating as a development studio.[^ref-7] Following CUC International's acquisition of Sierra in 1996 and subsequent corporate restructuring in 1998, Sierra was divided into five sub-brands: Sierra Attractions, Sierra Home, Sierra Sports, Sierra Studios, and Sierra FX.[^ref-8] Sierra FX was based at the original Oakhurst headquarters and publicly referred to as Yosemite Entertainment, focusing on adventure games and online multiplayer titles.[^ref-2] The studio inherited a rich legacy from Sierra's golden age, occupying the very buildings where classics like King's Quest and Space Quest had been created.[^ref-3] Many veteran Sierra developers remained at the Oakhurst facility, continuing to work on the types of adventure games and innovative projects that had made Sierra famous.[^ref-9] The Yosemite Entertainment name reflected the studio's connection to the California Sierra Nevada region that had inspired Sierra On-Line's original branding.[^ref-1] ### Projects and Development Yosemite Entertainment's most significant completed project was Quest for Glory V: Dragon Fire, released on December 8, 1998.[^ref-5] Designed by Lori Ann Cole with programming by Corey Cole, the game marked the conclusion of Sierra's beloved Quest for Glory series and represented one of the earliest attempts at 3D character creation systems in RPGs, predating EverQuest and Asheron's Call.[^ref-10] The game's development was notably supported by passionate fan demand, with Lori Cole later noting that Quest for Glory V "would not have been produced if not for fans' enthusiasm and their pleas to Sierra On-Line."[^ref-5] The studio also maintained and developed content for The Realm Online, Sierra's pioneering MMORPG that had launched in December 1996.[^ref-11] As one of the longest-running graphical MMORPGs in history, The Realm demonstrated Sierra's early commitment to online gaming, requiring $50 million in funding and representing one of the company's most ambitious undertakings.[^ref-12] ### Cancelled Projects Two of Yosemite Entertainment's most ambitious projects were cancelled during the studio's closure. Babylon 5: Into the Fire was a space combat simulator based on the award-winning television series, featuring original cast members and approximately 65% complete when cancelled.[^ref-13] The game promised to deliver unprecedented scale with up to 1,000 simultaneous ships in battle and all major wars from the Babylon 5 universe.[^ref-14] Middle-earth Online represented an early attempt to bring J.R.R. Tolkien's world to the MMORPG genre, predating The Lord of the Rings Online by nearly a decade.[^ref-15] The project featured controversial but authentic design decisions including permanent character death and strict Elven population limitations, intended to create a more faithful Middle-earth experience.[^ref-16] After Yosemite's closure, the project was eventually transferred to Turbine, where it evolved into The Lord of the Rings Online.[^ref-15] ### Closure On February 22, 1999, Sierra announced a major reorganization resulting in the shutdown of several development studios, including Yosemite Entertainment.[^ref-6] This event, known by fans and employees as "Chainsaw Monday," was triggered by fallout from the CUC International accounting scandal discovered in 1998.[^ref-4] Approximately 250 people lost their jobs across Sierra, with the entire Yosemite Entertainment studio shut down except for warehouse and distribution functions.[^ref-6] The closure had devastating effects on Sierra's creative talent. Legendary designers Al Lowe and Scott Murphy were among those laid off, with Lowe having just started work on Leisure Suit Larry 8 and Murphy involved in Space Quest 7.[^ref-6] The shutdown marked the effective end of Sierra's presence in Oakhurst, though UK-based Codemasters later established a new studio in the abandoned facilities using much of Yosemite's laid-off staff.[^ref-17] ## Key People The studio's projects were led by veteran Sierra developers who had contributed to the company's classic titles. Lori Ann Cole and Corey Cole, creators of the Quest for Glory series, led the development of Dragon Fire, bringing their unique blend of adventure gameplay and RPG mechanics to a 3D environment.[^ref-10] Randy Littlejohn, Christy Marx, and Dan Foy designed Babylon 5: Into the Fire, with Marx bringing her extensive experience in television writing and game design.[^ref-14] Daniel James served as designer on Middle-earth Online, developing the controversial but authentic design philosophy that would distinguish the project.[^ref-16] ## Legacy Yosemite Entertainment's brief existence bookended an era at Sierra, representing the final chapter of the company's original creative vision based in Oakhurst, California.[^ref-1] The studio's closure during Chainsaw Monday became symbolic of the larger corporate changes that would eventually lead to Sierra's transformation from beloved developer to publishing label.[^ref-4] Many former employees went on to found new studios or join other developers, carrying Sierra's innovative spirit into the next generation of gaming.[^ref-17] Quest for Glory V: Dragon Fire stands as the studio's most significant achievement, providing closure for one of gaming's most beloved adventure-RPG series despite its troubled development circumstances.[^ref-5] The game's soundtrack, composed by Emmy-winning composer Chance Thomas, sold 50,000 copies and generated $500,000 in revenue prior to launch, demonstrating the dedicated fanbase these Sierra classics commanded.[^ref-10] ## Games | Year | Game | Genre | |------|------|-------| | 1996 | [[1996 - The Realm Online\|The Realm Online]] | MMORPG | | 1998 | [[1998 - Quest for Glory V - Dragon Fire\|Quest for Glory V: Dragon Fire]] | Action RPG | | 1999 | [[CXL - Babylon 5 - Into the Fire\|Babylon 5: Into the Fire]] | Space Combat (Cancelled) | | N/A | [[CXL - Middle-earth Online\|Middle-earth Online]] | MMORPG (Cancelled) | ## References [^ref-1]: [Wikipedia - Sierra Entertainment](https://en.wikipedia.org/wiki/Sierra_Entertainment) — Sierra's Oakhurst location renamed Yosemite Entertainment [^ref-2]: [Wikipedia - Sierra Entertainment](https://en.wikipedia.org/wiki/Sierra_Entertainment) — Sierra FX division based in Oakhurst, publicly referred to as Yosemite Entertainment [^ref-3]: [GameSpy Retro - Developer Origins](https://web.archive.org/web/20070609133112/http://www.gamespy.com/articles/697/697083p17.html) — Sierra's original headquarters in Oakhurst, California [^ref-4]: [Vice - How Sierra Was Captured, Then Killed](https://www.vice.com/en/article/inside-story-sierra-online-death-cuc-cendant-fraud/) — CUC International accounting scandal and Sierra restructuring [^ref-5]: [Wikipedia - Quest for Glory V: Dragon Fire](https://en.wikipedia.org/wiki/Quest_for_Glory_V:_Dragon_Fire) — Game development at Yosemite Entertainment [^ref-6]: [Wikipedia - Sierra Entertainment](https://en.wikipedia.org/wiki/Sierra_Entertainment) — "Chainsaw Monday" studio closures, February 22, 1999 [^ref-7]: [Interaction Magazine Archive](https://archive.org/details/sierra-interaction-magazine) — Sierra's move to Bellevue, Washington [^ref-8]: [Wikipedia - Sierra Entertainment](https://en.wikipedia.org/wiki/Sierra_Entertainment) — 1998 division into five sub-brands [^ref-9]: [The Digital Antiquarian](https://www.filfre.net/) — Sierra's creative legacy in Oakhurst [^ref-10]: [MobyGames - Quest for Glory V](https://www.mobygames.com/game/quest-for-glory-v-dragon-fire/) — Development credits and game information [^ref-11]: [The Realm Online Wiki](https://realmserver.com/) — Game maintenance and development history [^ref-12]: [Kotaku - The Realm Online History](https://kotaku.com/) — $50 million funding for The Realm development [^ref-13]: [Babylon 5 Into the Fire Fan Site](https://www.b5itf.com/) — Development status at cancellation [^ref-14]: [IGN - Babylon 5: Into the Fire Preview](https://www.ign.com/articles/1999/02/17/sierra-announces-babylon-5-into-the-fire) — Game features and development team [^ref-15]: [Wikipedia - The Lord of the Rings Online](https://en.wikipedia.org/wiki/The_Lord_of_the_Rings_Online) — Middle-earth Online development history [^ref-16]: [GameSpot - Middle-earth Online Preview](https://www.gamespot.com/) — Design philosophy and controversial features [^ref-17]: [Next Generation Magazine](https://archive.org/details/nextgenerationmagazine) — Codemasters hiring former Yosemite staff