Chunsoft was founded by Koichi Nakamura, a video game designer and programmer who had worked with Enix, including the popular Dragon Quest franchise until Dragon Quest V. The "Chun" in the company name is from the first kanji Naka (中) of the company founder's name; Naka is read as "Chun" in Japanese Mahjong.

Following that, successive genre-trailblazing titles Torneko no Daibōken: Fushigi no Dungeon, Kamaitachi no Yoru, and Shiren the Wanderer established the company's good reputation.

[5] For a time, the company's products were considered mediocre, but 3-Nen B-Gumi Kinpachi Sensei: Densetsu no Kyoudan ni Tate!

During the development of Pokémon Mystery Dungeon: Red Rescue Team and Blue Rescue Team, Kouji Malta, one of the programmers for these two games, and contributed previously on EarthBound and Shiren the Wanderer 2, stated the company went through bad business performance, as employees from Chunsoft would leave the company progressively due to this issue.

Their goal was to provide support and sales for development funds, such as the Nintendo DS remake of Mystery Dungeon: Shiren the Wanderer or 428: Shibuya Scramble.