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Day 1 Studios was founded after the merger of Meyer/Glass Interactive, a division of the Meyer/Glass toy company, a toy and game design firm based in Chicago, Illinois. Founded in 1997, Meyer/Glass would go on to create a number of games for the PC and Playstation until 2001 when the studio (along with it's sister studio in Hunt Valley, Maryland) was sold to industry veterans Denny Thorley, Mike McDonald, and TJ Wagner who would go on to found Day 1 Studios. While of varied background (e.g. Electronic Arts, Activision, Microsoft Game Studios) they would lay the groundwork for the studios immediate work. Denny Thorley in particular would be of great importance to Day 1 as a former CEO and co-founder of FASA Interactive. Additionally many of the employees within the studios were former FASA alumni as well who had worked primarily on the MechWarrior/Battletech games. This created the ideal scenario for the studio's first project, MechAssault for the Xbox and Xbox Live. This game was co-developed by FASA Studios and would be some of the studios most critically acclaimed work.
Day 1 worked with Monolith to develop the Xbox 360 and PlayStation 3 versions of F.E.A.R., creating a relationship that paved the way for the development of F.E.A.R. 3 which they released in June 2011.
According to a report released in December 2011, Day 1's Chicago studio was in development of a revival of Konami's Silent Scope series when the company pulled out on the deal, resulting in massive layoffs of that team.
In January 2013 it was announced that developer Wargaming.net would acquire Day 1 for $20 million, to become Wargaming West, helping to develop multi-platform console games.