Founded in 1993 by Erik Gloersen, Tyr Neilsen, Andre Backen, Gaute Godager and Olav Mørkrid, the company started as an independent game developer and publisher.

The chief analyst of DnB NOR, Fredrik Thoresen, estimated that 100,000 subscribers played the game at the time of the report, far below the publisher's expectations, though these numbers were not confirmed by Funcom itself.

The new studio has worked on Funcom's two MMORPG projects: The Secret World and the Age of Conan expansion pack Rise of the Godslayer.

Ole Schreiner is one of Funcom's longest-serving employees and he has been working directly with titles such as Anarchy Online, Age of Conan and The Secret World in several capacities.

Trond Arne Aas, long-term CEO of Funcom, took on a new role as Strategic Advisor to the Board and Chief Strategy Officer.

[14] On August 22, 2012, Funcom announced that it laid off half of the company as a cost-adjustment initiative due to the poor performance of their MMORPG The Secret World.

[28] On 8 January 2019, it was announced that Funcom had acquired 50.1% of the Lisbon, Portugal-based company Zona Paradoxal, Lda ("ZPX") with whom it has had a working relationship since 2017.

[29] On 26 February 2019, Funcom announced that it was entering into an exclusive partnership with Legendary Entertainment to develop games related to the upcoming Dune films.

[31] Tencent announced in January 2020 its intent to fully acquire Funcom through purchasing all outstanding shares of the company in February 2020 valued at US$148 million.

[32] In June 2021, Funcom acquired Swedish video game developer The Outsiders, while the company also announced plans to open a new studio in Romania.

[34] Funcom acquired Cabinet Group, which owns the intellectual property rights of Conan, Mutant, and Solomon Kane and other works based on the writings of Robert E. Howard, in September 2021.

[35] On December 2, 2021, it was announced that they signed an agreement with NUKKLEAR for assistance on Funcom's upcoming Dune survival video game.

The game was published in 9 languages: English, Norwegian, French, Dutch, Swedish, Italian, Polish, Russian and Spanish.

Funcom issued several expansions: The Notum Wars, Shadowlands, Alien Invasion, Lost Eden and Legacy of The Xan.

Later, near the release of the Lost Eden expansion, Byom moved on to the Age of Conan team, and was succeeded as Game Director by Craig Morrison, also known as "Silirrion".

Funcom has also developed an online action role-playing video game for PC and console entitled Age of Conan: Hyborian Adventures.

On October 25, 2016, Funcom released the one vs. one multiplayer game Hide and Shriek, set in the same universe as their MMO The Secret World.

[39] One month later, on April 26, Funcom also publishes Dune: Spice Wars, a real-time strategy 4X title from developer Shiro Games, on Steam Early Access.