Following the bankruptcy of West End Games, the original designers of Paranoia banded together and purchased the rights to the game from West End in order to regain control of the line. The designers in turn granted a license to Mongoose Publishing to produce a new version of the game, with the result that Paranoia XP, written by Allen Varney, Aaron Allston, Paul Baldowski, Beth Fischi, Dan Curtis Johnson and Greg Costikyan, was published in 2004.

In 2005, Microsoft requested that the 'XP' be removed. As such, the name was shortened to just Paranoia. This edition of the game has received a much warmer critical reception, as well as selling well.

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