Founded in March 2008 by Bob Berry and Jonathan Mavor, it released its first title, Monday Night Combat, in 2010 to positive reviews.

It wound down in March 2020 after the contract for its game Kerbal Space Program 2 was canceled by publisher Private Division, which set up a new studio and hired a large portion of Star Theory's staff in December 2019 to continue the game's development, before Star Theory and its remaining staff became unable to secure new publishing agreements as a result of the COVID-19 pandemic.

"[6] On March 31, 2014, Uber Entertainment announced PlayFab[7] as a spinout to continue development of their UberNet back-end gaming service.

At the 2019 Gamescom, Uber Entertainment announced it had changed its name to Star Theory Games, and was working with publisher Private Division, a subsidiary of Take-Two, to produce Kerbal Space Program 2.

[12] Private Division opted to bring in Star Theory, a larger team but with similar capabilities, to work in parallel to develop the sequel while assisting Squad with the original game.