Today, he’s the CEO and cofounder of Myrkur Games, an Icelandic game development studio working on the ambitious Echoes of the End, a game more than five years in the making. The journey, he says, has been anything but simple. But then again, crafting a whole new world from nothing never is.

“Most people don’t realize how long it takes to build a game like this,” Halldór says. “For largescale PC or console titles, the development cycle can run from three to seven years. And that’s only if you already have a team, a codebase and existing tech. If you’re starting from scratch, like we did, you’re building the plane while flying it.” The complexity of game development extends far beyond gameplay mechanics. Characters, environments, sound design, voice acting, narrative, and technical pipelines all need to be created, tested, refined and tested again. Halldór compares it to building a cathedral. It requires vision, dedication and, above all, patience.

Myrkur Games began as a university project, born out of a three-week game design challenge. Halldór met his cofounders, Daníel Arnar Sigurðsson and Friðrik Aðalsteinn Friðriksson, in class, and the group quickly discovered a rare kind of creative synergy. Their final project turned into a formal studio, but instead of developing the same game further, they chose to pursue a far more ambitious idea – one that has defined their work for the last five years. “We’re making something completely new: new tech, new narrative, new world,” he says. “That means every single part of it has to be figured out as you go. It’s not like making a sequel where you already have a structure. It’s more like laying the tracks while the train is moving.”

The creative work never stops, he says. “Every part of the game has undergone countless iterations, feedback loops and revisions. As the team grew, things became a little easier. Once everyone understood the game and got into the groove, the creative input became stronger and more diverse.”

However, finding the right talent hasn’t been easy. Iceland’s gaming industry, while vibrant and growing, is still relatively small, so the studio can’t rely on local recruitment alone. “We can’t just poach talent from other studios here,” he says. “It’s a small country and a tight-knit community.

Instead, we focus on bringing people in from abroad and being as honest and transparent as possible about what life in Iceland is like.”

Iceland currently has more than 20 game development studios, a significant number considering the country’s population of just under 400,000. That gives it one of the highest ratios of game developers per capita in the world. The roots of this ecosystem lie in the original success of CCP Games, the creators of EVE Online, who put Iceland on the global gaming map. Since then, the industry has diversified, with new studios emerging thanks to accessible education programs, post-pandemic investment and the growth of international interest.

As the head of the Icelandic Gaming Industry Association, Halldór has had a front-row seat to this evolution. And yet, he points out, most Icelanders still don’t realize just how active the industry has become. “That’s going to change,” he says. “In the next year or two, we’ll see a wave of new game launches, and that’s when it will really hit people that Iceland has a proper game-development scene.”

For Myrkur Games, Iceland is more than a base of operations; it’s also a source of inspiration for the team. The studio’s name itself means “darkness” in Icelandic, a nod to both the country’s long winters and the moodier aesthetics of their game, Echoes of the End, a narrative-driven, single-player action-adventure game built in Unreal Engine 5. The story follows Ryn, a powerful protagonist who can manipulate matter in a world teetering between myth and ruin. While the game is entirely fictional, it draws heavily on Icelandic landscapes and atmosphere to shape its fantasy setting. The studio has collaborated with local actors and scanned locations across the country to embed the island’s stark beauty into the game’s aesthetic. With cinematic ambition and a focus on deep narrative, Echoes of the End aims to compete with major international titles while retaining a uniquely Icelandic identity.

“We’re not making a historical game, but Iceland is very much present in the design,” Halldór says. “Think of how Lord of the Rings used New Zealand’s landscape. We’re doing something similar. It gives the game a visual and emotional depth that’s hard to replicate elsewhere.”

Making games, however, isn’t just about code and creativity; it’s also about funding. And in the gaming sector, the rules are different. While some studios follow the VC-backed SaaS model, many others rely on publishers. “For single-player games, publishers play a huge role,” Halldór says. “They fund the game and get a share of the revenue on release. That works really well because we only ship every five years. The publisher handles marketing, localization and other infrastructure we don’t need year-round. It’s a symbiotic relationship.”

Still, getting that first wave of funding was grueling. Myrkur Games was just an idea born in a classroom, backed by founders with no commercial track record. “We had sky-high ambition and zero credibility. That’s not an easy sell. We worked for months, even years, without salaries. Just grinding it out because we believed in what we were doing.”

That grind, he adds, is a defining trait of the industry. “Game development is as exhilarating as it is exhausting. You’re building something massive, something deeply emotional, something you hope people will connect with. That makes it worth it. But it’s not for the faint of heart.”

Still, for Halldór, the reward is clear. “We’re making the game we want to play. That’s the dream. To give someone, somewhere, a story they’ll carry with them. That’s why we do it.” Motivation, he says, has never been an issue, but anxiety is a different story. “It’s definitely stressful. But as long as your motivation outweighs the anxiety, you’re good. It’s when that flips that you need to worry.”

For those considering a move to Reykjavík, Halldór paints an honest but enthusiastic picture. “A lot of people know Iceland for its nature and safety, and those things are real draws, but there’s also strong education, great healthcare and a pace of life that’s hard to match. It’s a calm place, a place where people can set up a life. That matters.” And he absolutely loves it, even the weather. “I love the temperature and climate here. I love the weather. I know this sounds like a joke, but I cannot live in hotter places. I don’t really like it too much. I grew up in the country with snow and northern lights hanging overhead – that’s something I can’t really live without.”

The city’s small size also helps with in-person collaboration, and for Halldór, the studio is one of his favorite places to hang out. “We wanted the studio in one place instead of a remote team. Making a game like this is a deeply creative endeavor. Having everyone in the same room makes a difference. It builds trust, helps us stay aligned and lets the ideas flow.”

He also values the pace and quality of life in Reykjavík. “It’s calm here. Safe. You don’t spend your life in traffic. You can build a studio, go for a walk in nature, and still make it home for dinner. It’s hard to put a price on that.”

Beyond the beautiful scenery and work-life balance, there’s something else that keeps him rooted: the Icelandic way of doing business. “People here are reachable,” he says. “Whether it’s for mentorship, collaboration or just to grab coffee, you can close the loop quickly. That kind of access is rare, and everyone’s willing to help.” Halldór believes that this willingness to support each other is a sometimes hidden aspect of living and working in Reykjavík. For example, given the small size of Reykjavík in comparison to Iceland, it might be easy to assume that the capital is just a “rural town in a country where not a lot goes on,” but it’s the smaller size of the community that makes such a positive difference to collaboration and connection. “It’s amazing how easy it is to get in contact with everybody, to meet people from the business, to connect. That’s something that’s tough to do elsewhere.”

In terms of advice for new founders, he suggests getting good at something specific, building a team that shares your passion, and then bracing for the long haul. “You have to believe in what you’re making – really believe in it – because the early days are brutal. It’s like setting off on a cross-country hike without a map, with only your belief in the destination to keep you going.” And soon, if all goes according to plan, that world Halldór and his team have spent more than five years building will be ready to share.

What’s your favorite book?
The Witcher series, by Andrzej Sapkowski.

What do you do to start your working day well?
Coffee and breakfast – non-negotiable. I just can’t function without it.

What’s your favorite game?
The Witcher, Mass Effect and the God of War series.

Favorite place to go for deep work or creative thinking in the city?
Driving around Reykjavík, or even just outside of town. Sitting in one place doesn’t stimulate my brain.

One coffee shop to recommend. Why?
Hygge. It’s a very small, niche shop – maybe that’s why I like it. It’s also close to the office, which helps.

What are your favorite places to hang out?
Vinnustofa Kjarval downtown. It’s got a great view over the central area. You’ll probably meet someone interesting even without plans.

What are your favorite places to hang out?
Any historical museum. I just like seeing the history of people who lived before and how they lived.