After Michael Acton Smith founded the company in 2004, Mind Candy launched its first major project: the Perplex City. Perplex Story was a hybrid of games, puzzles and stories which was played by thousands of people worldwide in its earlier stages.
In 2007, Mind Candy created the Moshi Monsters. It introduced a virtual world in an online environment. It was offered to children between the ages of 6 and 12. In Moshi Monster, the user adopts his own pet monster and uses it it to socialize and play educational puzzles.