Their first game, Magicka, won the Game of the Year award at the Swedish Game Awards 2008.[5] In 2011, Magicka was released, published by Paradox Interactive, after a contract with the publisher was signed in 2009.[2]
In the following years, Arrowhead developed The Showdown Effect, a 2.5D multiplayer action game inspired by 1980s and 1990s action movies, for which they stuck with Paradox Interactive to publish it in 2013, and Gauntlet, a co-op dungeon action game, which was published by WB Games in 2014.[2]
On 22 May 2024, Johan Pilestedt announced that he had stepped down as CEO and hired Shams Jorjani, a longtime business associate to succeed him. Pilestedt assumed the role of chief creative officer (CCO) in order to fully involve himself in game development.[7]