I think it went something like this:
Sometime in late 2008:
In the aftermath of the Aliens cancellation the ruler of the lands Obsidian, Feargus, had a big problem. Not only had he now tons of obsidanit slaves that didn't do anything, No. There were even more to come since the storms of zehir are bound to leave.
With such sorrow he decided to go ask the foreign supreme country of Square-Enix for help since they just acquired a bunch of countries they had no need for. He said to them he'll take ANYTHING.
And they asked "Anything?"
And Feargus answered "Anything!"
And so they gave him the shackles of Dungeon Siege. And Feargus cried, he cried for what he had done
1 Week later back at Obsidian:
Feargus: Uhm, dudes I have a new franchise. From Square Enix.
Everyone: Square Enix?! Sweet. What genius franchise can we work on? Always wanted to do a jrpg.
Feargus: ..... Dungeon Siege
ROE (Random Obsidian employee): WTF? Diablo 3 comes out in like 2 years. Are you crazy?
ROE 2: Didn't Josh do party dungeon crawler better than any Dungeon Siege with IWD2?
ROE 3: We're doomed. DOOOOOOOOOOOOOOOOOOOOOOOOOOOOMED.
Nathaniel Chapman: Hey guys. I have a idea! What if we change the battle system to a mix between Ninja Gaiden and an ARPG. Get over the top Rag Doll effects and do beautiful enviroments? Like some over the top matrix limp slashing action with loot?