After this conversation, the idea of doing a title about animals came about, resulting in Petz, which was based on the graphics technology they previously used in Ballz. Fulop talked with a mall Santa who told him that the number one thing children asked for Christmas was still a puppy. Co-founder Rob Fulop saw the controversy generated by Night Trap, a game he worked on and wanted to make something that was the complete opposite of it. With their hardware project cancelled, the company needed a new product to work on. AT&T pulled out of the venture due to the cost of the device, leaving the company with half their initial funding. PF Magic was born out of a failed hardware venture with AT&T and Sega to build a Sega Genesis accessory called "The Edge", which was to allow for online multiplayer over telephone lines. The project became Façade, a freeware game where you can interact with a couple whose 10-year marriage is in trouble. PF Magic's designer and programmer, Andrew Stern, went on and created an experimental project with Michael Mateas along with others for five years. Max Magic received numerous prestigious awards for its uniquely intuitive way of entertaining and teaching children and adults about magic. The company also produced Max Magic, the world’s first electronic magic kit, which represented a breakthrough in interactive 3D character design.
This early game, however, failed in the marketplace, though it would inspire many of their following games, such as Petz. The innovative game featured main characters composed completely of spheres. One of PF Magic's earliest efforts was the 1994 video game Ballz published by Accolade.
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