The company was founded in 2000 by brothers Christopher and Markus Kassulke along with Udo Bausewein. In 2006, HandyGames released its first free, ad-funded game and began the gradual transition to a largely ad-funded business model. Since 2010, all new HandyGames mobile titles are either free or freemium.

In 2012, HandyGames expanded onto other platforms like PC or Smart TVs.

HandyGames was one of the first companies to launch games for wearable technology in 2014. The games are compatible with Android Wear devices, including the Moto 360 by Motorola, the Huawei Watch, the Sony SmartWatch and the LG G Watch.

The company began developing VR games 2015 and released titles like "Hidden Temple – VR Adventure". They can be played in 360° mode or in VR using one of the supported head-mounted displays like Oculus Rift, Samsung Gear VR, or Google Cardboard. Simultaneously, HandyGames began developing games for the Eighth generation of video game consoles like the PlayStation 4, Xbox One or later the Nintendo Switch.

On 9 July 2018, THQ Nordic announced that it had acquired HandyGames and all of its intellectual property.

In May 2021, Embracer Group announced the acquisition of Massive Miniteam by HandyGames, which will be fully integrated within the HandyGames organization, under the operative group THQ Nordic.