Asmik Ace Entertainment was formed in 1998 through a merger between the Asmik Corporation and Ace Entertainment, both of Japan.

The Asmik Corporation was founded in 1985 as a subsidiary to the Sumitomo Corporation of Japan. Its focus was in the area of video games for the video game console market, specifically the NES. It quickly moved on to distribute motion pictures in Japan, and won several awards for doing so.

Ace Pictures Inc. was founded in 1981 as a division of Nippon Herald Films to produce Japanese films and distribute foreign art house pictures. Several of its pictures earned awards and hold positions as some of the highest grossing films in Japan.

Asmik Ace Entertainment continues to produce games for Sony's Playastation and Playstation 2 and Nintendo's Nintendo 64 and Gamecube, and distributes high quality films for the Japanese movie market.