Founded by Rick Loomis and Steve MacGregor in 1970, the company got its start running a simple computer-moderated wargame, Nuclear Destruction, widely considered to be the first commercial play-by-mail (PBM) game. In 1976 the company started running a space exploration/conquest PBM game titled Starweb.

Flying Buffalo has also published games outside of PBM, starting off with the card game Nuclear War. In 1975 they published Tunnels and Trolls, a fantasy role playing game generally similar to Dungeons & Dragons. Later products included background materials for fantasy role playing games, which became the "Catalyst" series. They also produce a range of unusual dice (such as a set that tells you what toppings to order on your pizza), and currently hold the printing rights to the Ace of Aces and Lost Worlds flip book systems. The company also ran a gaming store at various locations in Tempe, Arizona until 1985.