Blue Tongue originally provided web development services, but moved into video games in 1995 with their first release, AFL Finals Fever. It was released on 9 June 1996 and reached number 3 on the Australian software sales charts, selling a total of 15,000 units overall. Another game, Riding Star, was their first international release. It was ported to multiple platforms, including the PlayStation and the Game Boy. Blue Tongue developed the TOSHI game engine used internally for many of its projects.
In 2008, Blue Tongue finished de Blob, its first original game since Riding Star, for the Wii system. Since its release, de Blob has garnered significant and favorable acclaim from various gaming websites, including Official Nintendo Magazine, which awarded the game a rating of 92% and a Gold Award, and IGN.com, which awarded the game several Wii-specific awards in its 2008 video game awards, including Best Platform Game, Best Graphics Technology, and Best Use of Sound. In addition to the awards won, IGN also nominated de Blob for several other Wii-specific awards, including Best New IP, Best Original Score, Most Innovative Design, and Game of the Year.
In 2011, Blue Tongue was announced to be closed down under a restructuring and realignment plan by parent company, THQ