Bits Laboratory Co. (有限会社ビッツラボラトリー) was established on December 24, 1985, by Satoru Miyazaki (宮崎暁) with fellow part-time workers from ASCII. Presumably it was originally called Workss. (The Famicom version of Ghostbusters credits "Workss"; The NES version credits "Bits." The Workss name is also present in the Famicom version of King's Knight.)

Bits Laboratory had a close relationship with Game Arts for years and worked with Square a number of times during the Famicom era. In the 1990s, the company had a hit with the PlayStation dating sim True Love Story. It was also a member of Game Developers Network (GD-NET), a collective of smaller Japanese game developers.

In 2017, Bits Laboratory entered into a formal business partnership with Miya Engineering, a software development company run by Toyokazu Miyazaki (宮崎豊和).

Yasunori Takahara (高原保法) and Motoyuki Kanayama (金山泰志) started GameCrab in 2001, which continued development of the True Love Story series.