Starbreeze Studios was originally founded in 1997 by Magnus Högdahl in Härnösand, Sweden. Sound designer/composer Gustaf Grefberg was onboard the company more or less from the start, as both Högdahl and Grefberg were part of the demo group Triton Productions, who had attempted to make the game Into the Shadows, which was cancelled in 1996. Their first project as Starbreeze was developed under the name Sorcery, a first person fantasy role playing game that never saw the light of day.
In 2001 Starbreeze merged with the O3 Games and the staff of Starbreeze was moved to Uppsala, Sweden. The Sorcery project was also cancelled around this time and work on their debut title, Enclave, began.
Since the merger in 2001, Starbreeze has developed 5 published titles to date with more on the way. With their latest titles being The Chronicles of Riddick: Assault on Dark Athena, a remake of their critically acclaimed 2004 release The Chronicles of Riddick: Escape from Butcher Bay with updated visuals, a new single player campaign, and new multiplayer content for the Xbox 360 and Playstation 3.
On 2nd February, 2009, a CEO from the Ludlum Estate confirmed in an interview with Variety that Starbreeze were working on a new Jason Bourne game, following EA's 10 year deal to produce video games based on the works of Bourne author Robert Ludlum.
In March 2010 - rumors regarding a cancellation of the Bourne game started appearing, and the only known confirmation is that Starbreeze has confirmed that one of their projects with EA as a publishing partner has been cancelled. The other project Starbreeze was working on - Project Redlime - was rumoured to be a reboot of the Syndicate franchise, which was confirmed following its official announcement in September 2011.
Their reboot of the Syndicate franchise was released on Feb. 21, 2012.
On April 12 2012, Starbreeze announced that they would be buying the Swedish game development company Overkill Software by acquiring all shares of SLG Ever Screen.