Terminal Reality is an American video game development and production company based in Lewisville, Texas.

The goal of Terminal Reality was to exploit texture mapped 3D game engines, with only $1000, and working out of Brett Combs' home.

During that time they were developing their first release, Terminal Velocity, and pulled together $120,000, received advances on the game and were basically able to avoid giving up ownership and primary decision rights to venture capitalists.

3D Realms was the new division started by the popular Apogee Software known for its arcade style action shooters and titles such as Wolfenstein 3D.

Scott later said in a Dallas Business Journal report that "They had the backgrounds and track records with proven experience to pull off the game they were pitching to us.

Developed by the now former TRI employee Paul Nettle, originally written using software rendering, but later adapted to use the OpenGL API.