The company was originally founded in Hull in 1990 by Charles Cecil, Tony Warriner, David Sykes and Noirin Carmody, with a view to create the company's first game, Lure of the Temptress with the Virtual Theatre engine, which they also used to develop Beneath a Steel Sky and the first to games in the Broken Sword series. Their most successful games are the Broken Sword series and Beneath a Steel Sky.

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