Formed in 1992 by CEO Shelley Day and Creative Director Ron Gilbert as Humongous Entertainment, it is known for point-and-click adventure games intended for children 3-8, such as the Putt-Putt series, the early Fatty Bear series, and the Pajama Sam and Freddi Fish franchises. Ron Gilbert, the company’s main game strategizer, helped with many of the game planning and creation stages.

Later, Humongous Entertainment began to produce games for children aged 5-10, with titles such as Spy Fox and Backyard Baseball, the latter which was arguably their most popular game, and produced sequels such as Backyard Soccer and Backyard Hockey. The series eventually grew to be known as the Backyard Sports series, and its eventual hook became the addition of professional athletes as children to be playable in the games. Unlike its other titles, the Backyard Sports series became available for most sixth generation systems (Nintendo GameCube, PlayStation 2, and Game Boy Advance) and will soon be available on the Wii.

Humongous Entertainment has also released several games featuring Big Thinkers and Blue’s Clues characters. In 2002, Humongous Entertainment released Moonbase Commander with very little fanfare. The game was sold at a budget price, but was well received by game review sites. Moonbase Commander eventually won IGN’s "Best of 2002: The One No One Played" and Gamespot’s "Best Game Not Played on PC for 2002".

In July 1996, Humongous Entertainment was bought by GT Interactive for $76 US million. GT Interactive was first renamed to Infogrames, Inc. after Infogrames Entertainment SA bought them in November 1999 and was later renamed again to Atari, Inc.