Funcom has been making videogames since 1993, originally creating games under licence such as Casper and Dragonheart (both published in 1996) before developing its own IP with adventure game TLJ (1999) and the MMO Anarchy Online (2001). After following up TLJ with Dreamfall, Funcom returned to licencing with the MMO Age of Conan: Hyborian Adventures, which did not perform as well as retail sales promised. Servers were merged and it eventually became free-to-play. Their most recent outing was Ragnar Tornquist's pet MMO The Secret World, which itself, following even MMO juggernauts such as World of Warcraft, recently became free-to-play.
As Funcom have stated that they will no longer make offline games, Ragnar Tornquist separated from the company in late 2012 to form Red Thread Games, with the express purpose of making Dreamfall Chapters. Funcom retains the IP of the TLJ universe, and will collect royalties for it and future games.