Soon after its founding, Tectoy completed a licensing agreement with Sega allowing it to market a laser gun game based on the Japanese anime Zillion, which sold more units in Brazil than in Japan.

Other products developed by Tectoy include educational toys such as the Pense Bem, karaoke machines, and original Master System and Mega Drive games released exclusively in Brazil, such as Férias Frustradas do Pica-Pau and Portuguese translations and alternate versions of video games.

While successful at times, the company has also undergone debt restructuring in 2000 and actions to consolidate its two public stock offerings into one.

Dazcal was previously associated with Sharp Corporation in Brazil, while the Kryss brothers were the owners of Evadin, a Brazilian TV manufacturer associated with Mitsubishi.

[6] In order to give the company an advantage in marketing costs, Tectoy set its factory in the Free Economic Zone of Manaus to leverage tax incentives.

[6] The first Sega product released by Tectoy was the Zillion infrared laser tag gun, based on the phaser featured in the anime of the same name.

[5] The success of Zillion led Sega to have Tectoy distribute its 8-bit video game console, the Master System, in Brazil as well.

Some of this success is attributed to the company's strong advertising investments: the launch campaign, which lasted until Christmas 1989, was at an expense of $2 million.

[7] Over a year after the launch of the Master System, Tectoy officially brought Sega's 16-bit console, the Mega Drive, to Brazil in December 1990.

[11] Like the Master System, the two products were assembled by Tectoy in Manaus, and Game Gear was the first portable console manufactured in Brazil.

[12] Sega's primary competition, Nintendo, did not officially arrive in Brazil until 1993; they entered the region through Playtronic, a partnership between Gradiente and Estrela.

[17] The service officially began in April 1997 and was part of a strategy to diversify the company's interests away from being a seasonal industry.

The company became the first in Brazil to use compact discs as media for its karaoke devices, in contrast to the cartridge-based machines of its only domestic competitor, Raf Electronics.

[19] With these restructuring changes, Tectoy was able to reduce its annual costs to R$4 million in 2001, half of what it spent in 1997,[28] and bankruptcy procedures closed on October 4, 2000.

Tectoy intended to introduce more product lines, including DVD players, with a focus on higher profitability and less seasonality to the business.

[28] The company's video game business remained strong during this time; the year 2000 saw Tectoy make a 25% increase in sales of its Mega Drive console as compared to 1999.

While a 2% sales decrease occurred in 2001 due to power rationing in Brazil, the company aimed for another 25% increase of its video game business the next year.

[34] Tectoy also began importing the Nabaztag, a portable rabbit-shaped electronic device that played music and accessed information over Wi-Fi.

[35] A fire occurred in the Tectoy factory in Manaus in November 2008, which temporarily paralyzed the production lines of the company.

"[39] The new digital platform was publicly released at the end of the year as a new video game console dedicated to emerging markets, with no physical media and low price to minimize piracy.

[45] For a short time starting in November 2010, Tectoy produced and marketed 14-inch tube TVs with 12 games included in memory.

[52] Tectoy's hardware for the Master System and Mega Drive evolved over time into derivatives targeting the low-income market.

[57] Additionally, Tectoy built relationships with other developers, including Capcom, Acclaim Entertainment, Electronic Arts, and Midway Games.

Tectoy would then translate titles from these developers into Portuguese for release in Brazil, and to tie in to popular Brazilian entertainment franchises.

Aside from porting, the company developed Férias Frustradas do Pica-Pau after finding out that Woody Woodpecker was the most popular cartoon on Brazilian television.

[60] The Magic Star, a plastic singing toy based on a character from Monica's Gang, was popular in the 1980s and later was rereleased in 2013.

[6] More recently, Tectoy has also entered the infant care market, partnering with Fisher-Price on baby monitors and with Disney on air purifiers and toothbrush sterilizers.