Based in Farnborough, Hampshire, UK, it was formed in August 2006 by former SCi and Eidos creative director, Patrick O'Luanaigh.

[11] The first project created by nDreams for PlayStation Home was the world's first console-based and virtual world-based alternate reality game, Xi.

Xi was released on March 23, 2009 and lasted a total of 12 weeks, taking place within PlayStation Home, across the web and in the real world.

Live events took place across the globe including tasks in Spain, Lebanon, Malaysia, India and the United Kingdom.

[23] In June 2014 at the E3 video game show nDreams announced The Assembly, which was planned for release on the Oculus Rift and Sony PlayStation VR headsets.

[24] The Assembly is an adventure game where you uncover the morally dubious secrets of an unknown scientific organisation from the perspective of two different characters.

[39] The action shooter would later launch on Steam[40] and Meta Quest[41] platforms, winning Best VR Game at the TIGA Awards in 2022.

[49][50][51] In December 2022, nDreams announced it had acquired the Brighton-based virtual reality studio Near Light (developer of Shooty Fruity) for an undisclosed sum.

[57] Sony Pictures Virtual Reality published the nDreams-developed Ghostbusters: Rise of the Ghost Lord in October 2023.

[58] Shortly after, in November, PowerWash Simulator VR launched on Meta Quest following the major success of its PC and console versions.

[59] In July 2024, nDreams announced FRENZIES, a VR multiplayer shooter with ever-changing round types “where the momentum can shift in a moment’s notice”.

At the inaugural VR Games Showcase in August 2024, nDreams revealed VENDETTA FOREVER, a shooter for Meta Quest and PS VR2 developed by independent studio Meat Space Interactive.