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In 2017, Klei Entertainment acquired Slick Entertainment. On July 2, 2013, it was announced that their next release would be titled Invisible, Inc., a turn-based espionage game released on May 12, 2015. On April 21, 2016, Klei released a stand-alone multiplayer version of Don't Starve called Don't Starve Together, which has regular updates and individual downloadable content. Before it was officially self-published, Klei sold more than 300,000 copies of Don't Starve at a price of $15 each. Don't Starve was released in a 2-for-1 beta format on Steam, allowing players to purchase two copies of the game for the price of one. Klei's survival adventure game Don't Starve was released on April 23, 2013. It was released on August 24, 2010, for the PlayStation 3, August 25, 2010, for the Xbox 360, and October 26, 2010, for Microsoft Windows. The company's fourth original title, Shank, was announced at Penny Arcade Expo 2009. They announced in late August 2010, that development had stopped and the game had been canceled. In 2008, Klei developed Sugar Rush, a casual massively multiplayer online game. The company assisted with Slick Entertainment's N+, the Xbox Live Arcade port of the Adobe Flash game N. Retitled Eets: Chowdown, this version featured 120 new levels and an action minigame called Marsho Madness. Between those two releases, the game was ported to the Xbox 360 via the Xbox Live Arcade platform and released on April 25, 2007. Their first title, Eets, was first released on March 27, 2006, for Microsoft Windows, then for Mac OS X on December 9, 2010. In 2009, Klei had 11 employees and as of May 2013, it had grown to 35 employees. Jeffrey brings a unique blend of 2D animation and comic book aesthetics that have become a signature of the games developed by Klei. With the initial funding secured, Jamie partnered with Jeffrey Agala to become Co-Founder and Creative Director at the studio.

Cheng acquired seed funding for Klei by selling his THQ shares earned at Relic and getting a $10,000 loan from his brother. Prior to the formation of Klei, Cheng worked as a specialist AI programmer at Relic Entertainment, then owned by THQ.

Jamie Cheng founded Klei Entertainment in July 2005. On January 25, 2021, Klei became a subsidiary of the Chinese holding conglomerate Tencent. Their best-known titles include Don't Starve and Oxygen Not Included. Klei was formed in July 2005 by Jamie Cheng. ( / k l eɪ/ KLAY ) is a Canadian video game development company located in Vancouver, British Columbia.

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