Idea Factory was established in April 1994 by former Compile employees. The company is highly recognized for developing and publishing niche role-playing game series, including Spectral Force and Generation of Chaos. They later expanded by establishing subsidiaries such as Compile Heart to handle various game development duties.
During its formative years, the publisher built its portfolio on the PlayStation platform, releasing the adventure game
Yaku: Yuujou Dangi in 1996, followed by the dungeon-crawler
Spectral Tower later that year. The company quickly capitalized on these properties, producing sequels and spin-offs such as
Yaku Tsuu: Noroi no Game and
Spectral Force [Limited Edition] in 1997, as well as
Spectral Tower 2 in 1998.
As the brand diversified its tactical and simulation offerings toward the end of the decade, it published
Monster Complete World and the hack-and-slash RPG
Spectral Blade in 1999. Transitioning into the next console generation, the publisher released the PlayStation 2 snowboarding title
Sky Surfer in 2000. These early releases established the company's distinct focus on fantasy-themed strategy and niche genre titles, laying the groundwork for its long-term survival in the competitive Japanese gaming market and eventual international localization efforts.