Wisdom Tree began as a subsidiary of Color Dreams. The company was created for the purpose of releasing Christianity-themed video games. Some of Color Dreams's best selling titles came from this branch of the company. Some of these titles include Spiritual Warfare and Bible Adventures. In the mid-1990s, Color Dreams quit the video game business and Wisdom Tree split off to be its own independent company.
Like parent company Color Dreams, Wisdom Tree's catalog of console and handheld titles was not officially licensed by the console makers. They were also not sold through traditional retailers; they were more commonly sold in Christian bookstores and similar businesses. All of Wisdom Tree's early religious games are free to play on their company website. In 2013, the company signed a deal with Piko Interactive to let Piko produce physical cartridge reprints of a portion of their catalog.