Panic was originally established by Cabel Sasser and Steven Frank in 1997 to make apps for the Mac platform.
Their first app was Transmit, which was a commercial success and enabled them to make other apps such as Audion (a competitor to SoundJam MP, until it was acquired by Apple and became iTunes), Unison, Candybar, Coda, Prompt, Nova among others.
Their first professional contact with the game industry was by producing licensed T-shirts for Katamari Damacy in the 2000's.
In September 2013, Panic entered video game publishing by partnering with Campo Santo on their first title Firewatch, released in 2016.
In 2019, they published their second game, Untitled Goose Game and announced Playdate, a small handheld console which (after COVID-related delays) came out in 2022.
In 2020, they announced their third game publishing partnership for Nour: Play With Your Food.