Software Dynamics was founded in 1987 by Bill Stewart as a development studio for applications for early revisions of Windows. They eventually developed Operation: Inner Space, its only game before returning to developing applications for Windows under the Dynamic Karma subsidiary.
After creating 1989's "Magic ScreenSaver," Software Dynamics expanded by creating the very popular screen saver program "After Dark," which was one of the most popular sharewares of the early 1990s.
In 1992, Software Dynamics released Operation: Inner Space for PC, a 16-bit top-down game compatible with Windows 3.x, distributed as shareware, retail disk, and through email. The game is still available for purchase at original retail price through the Software Dynamics website. A sequel entitled "Inner Space 2: Lightning," was planned, but was eventually cancelled.
After releasing Inner Space, the company returned to developing Windows applications, creating a subsidiary named Dynamic Karma and developing the "Power Drawers" application in 1999. Though the company bills itself as "still active," it has not developed or published any games or software since.