Activision dismantled Phoenix Online Studios’ long-awaited King’s Quest fan game earlier this year, but has recently changed its mind on the matter.

After saddening news that Activision had shut down The Silver Lining, the King’s Quest fan revival in development for nearly a decade, fan outcry may have brought it back to life. Phoenix Online Studios has announced that The Silver Lining is back in business.

Phoenix Online had worked out a deal with Vivendi to develop The Silver Lining under a non-commercial fan license, but when a merger transferred the King’s Quest property over to Activision, the deal fell apart and Activision served Phoenix with a cease-and-desist. Despite The Silver Lining‘s eight year development cycle, Phoenix was forced to shut the project down.

A huge effort was put forth to bring The Silver Lining back to life, and it appears to have worked. Phoenix and Activision reached an agreement to release the game as a free downloadable episodic series, with Episode 1: What is Decreed Must Be to be released on July 10. More episodes will follow throughout 2010.

The Silver Lining is a continuation of the stories told in the highly beloved King’s Quest adventure game series created by Roberta Williams for Sierra Entertainment in the 1980s. It spanned eight games told from the perspectives of various members the royal family of Daventry, with King’s Quest V and VI bright examples of the best adventure games of the 1990s. The best ones that frustratingly allowed you to fail or die anyway. A hint book wouldn’t be a bad idea if you go back to try them.

The Silver Lining marks the return of feather-capped King Graham as he strives to save his family from evil. Keep an eye on The Silver Lining‘s website for the release of each episode.

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