The company was founded in 2009 when Kuju Entertainment was looking for developers to make a new studio. At the same time, several developers from 2K Czech were retiring. These developers decided to set up a new studio, which became 'Vatra Games'. In July 2012, some time after the release of Silent Hill: Downpour, KUJU Entertainment Limited terminated its contract with Vatra Games. In September 2012 Vatra Games was declared bankrupt.