They developed nineteen games independently (for Microsoft Windows, Xbox 360 and Mac platforms), published two games, started distribution of downloadable casual games on their online Arcade, created a division of their Arcade entirely devoted to Mac games for Mac users and started hosting ad supported free online web browser games. The company was cofounded by Lars Brubaker, Ernie Ramirez, James Smith and Ion Hardie in 1997.
In October 2008, Reflexive Entertainment was acquired by. In 2005, Reflexive's Wik and the Fable of Souls won three awards at the 2005 Independent Games Festival which included Innovation in Visual Art, Innovation in Game Design and the Seumas McNally Award For Independent Game Of The Year.