The company was founded in 2009 by Fredrik Ljungdahl, Jerk Gustafsson, Jens Matthies, Jim Kjellin, Kjell Emanuelsson, former Starbreeze Studios founder Magnus Högdahl and Michael Wynne (Magnus and Michael left before the acquisition, who were all key members of the The Chronicles of Riddick: Escape from Butcher Bay and The Darkness series) and lead developer of Studios Starbreeze Studios. In November 2010, MachineGames was acquired by Bethesda Softworks's, the parent company of ZeniMax Media. The studio also developed a prequel to the New Order titled Wolfenstein: The Old Blood which released on May 5th 2015.
In 2016, they released additional free episode titled Dimension of the Past for Quake in honor of 20th anniversary of the franchise.   At E3 2017, they had announced the sequel of Wolfenstein: The New Order in the titled as Wolfenstein II: The New Colossus and was released on October 27, 2017. In 2018, they announced both spin-off title, Wolfenstein: Youngblood and Wolfenstein: Cyberpilot released on July 26, 2019.