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Spellbound  was founded in Germany by Armin Gessert (who has been active in game development since 1984 - working on the Giana Sisters series) in the year 1994.  They initially developed graphics for other game companies and contributed to development projects of other companies. Their first original titles was Airline Tycoon, released in1997. While the game never enjoyed a huge commercial success, it gained a cult following over time and saw the release of a budget and deluxe version. 
 
The company went on to develop two games which were heavily inspired by the genre-defining and very successful Commandos series. Desperados, set in the wild west, which spawned a sequel, as well as Robin Hood : The Legend of Sherwood, which was less successful than Desperados but received critical acclaim for technical merits, such as the cut scenes and the graphics engine. 
 
Their two subsequent releases flopped on the market (Chicago 1930 and Smoking Guns) and after releasing the moderately successful, if eagerly anticipated, sequel to Desperados, Spellbound was dropped by their publishers ( ATARI)  and they had to find new publishing deals. 
 
Although Spellbound is still releasing games to this day, with many members having left for other game companies, they could never rekindle their initial success with the Desperados franchise.

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