The Settlers of Catan was first conceptualized by Klaus Teuber around 1993-1994 as part of a massive game project that focused on the exploration of a new land, colonization, development, and eventual conflict. While working with the board game publisher Franckh-Kosmos Verlags-GmbH & Co (Kosmos), it was determined that the scope of the game was too ambitious. Klaus worked with Kosmos over the course of the next year to refine the development aspects of the game and eventually published it under the German name "Die Siedler von Catan" for the German market in 1995.  Pieces of the original massive game project later appeared in the games Entdecker and to a certain extent even in Domaine (both published by Mayfair/Kosmos).

The Settlers of Catan quickly garnered critical recognition, winning both the prestigious German Spiel des Jahres (Game of the Year) award and the Deutscher Spiele Preis (German Game Prize) in 1995. Mayfair Games published the English language version in 1996, which allowed it to claim the Origins Award in 1996. The game is available in 18 languages. Since its original publication in Germany, it has been translated into Chinese, Czech, Danish, Dutch, English, French, Greek, Hungarian, Italian, Japanese, Korean, Norwegian, Portuguese, Russian, Slovenian, Spanish, and Swedish.

The Settlers of Catan game has spawned a number of expansions, historical scenarios, and related games. The core game line now includes The Settlers of Catan, The Seafarers of Catan, The Cities & Knights of Catan, and 5-6 player expansions for each of those three. Additionally, three historical scenarios exist in German (no English translation), called "Historische Szenarien I: Cheops & Alexander der Grosse" (Cheops & Alexander the Great), "Historische Szenarien II: Troja & Die Grosse Mauer" (Troy & The Great Wall), and "Die Siedler von Nürnberg" (The Settlers of Nürnburg). "Die Siedler von Catan - Das Buch" (The Book), a book of 15 fan-submitted scenarios and variants was edited by Klaus Teuber in conjunction with Kosmos for release in 2000. In 1996, The Settlers of Catan Card Game was released, followed by The Settlers of Catan Card Game Expansions (including 5 expansions). The Starfarers of Catan was release in 1999, followed by Starship Catan in 2001, and Settlers of the Stone Age in 2002. There is even a children's Catan edition, which allows players starting age 4 to enter the world of Catan.

Since 1995 11 million Catan games have been sold. Based on the estimates by the various Catan publishers , there are more than 15 million active players of The Settlers of Catan around the world that play the game on a weekly basis, and the audience is continuing to grow at a rapid pace.

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