Created in 1996 by Feargus Urquhart, the studio was named Black Isle after Urquhart's homeland. The studio, although credited for the creation of Fallout was, in fact, not responsible for the game. Rather a key portion of the original studio came from the team that made Fallout. When developing Fallout 2, the studio's first official game, several employees left Interplay to form Troika Games after they "were unable to come to an agreement with Interplay as to how the team should be structured."
The remaining team would go on to release such critically acclaimed games as Fallout 2, Planescape: Torment, and Icewind Dale. The studio also released critically acclaimed Baldur's Gate and Baldur's Gate II: Shadows of Amn developed by BioWare.