Patrick Ketchum, who had founded Datasoft before, founded the company in 1990. In 1995, an "internal shake-up" took place in which the investors removed management and installed a "turnaround management team" that could accomplish the transition to third-party publishing. Ketchum left the company and started a career as a photographer. The company went defunct early in 1997.
Titles announced by Cyberdreams but never completed include Hunters of Ralk, a role-playing video game designed by Dungeons & Dragons creator Gary Gygax (with design by Knights of Xentar author David S. Moskowitz),[1] and Wes Craven's Principles of Fear, based on a concept by film director Wes Craven.[2][3] Other announced, but unreleased games are Evolver,[4] an adaptation of Species,[5][6]Reverence,[7] and The Incredible Shrinking Character.[8] Only two survived with the help of other publishers: Ares Rising and Blue Heat. Reverence was also eventually leaked as a playable prototype.[9]