Founded as a subsidiary of the Japanese company Natsume Co., Ltd in 1988 to publish games in the United States.

The companies separated in 1995 with Natsume inc becoming it's own business. The companies still do business together at times.

Both companies retained the rights to the Natsume brand name in the countries they operate in.

Natsume inc. created a Japanese branch company, Natsume inc. Japan, in 2013.